A proposal to merge Mohan Breweries and Distilleries with Binny Ltd has fallen through with the latter deciding to get back a total advance of about ₹240 crore it had paid for Mohan Breweries’ real estate and windmill assets.

Binny announced in the stock exchange today that an audit committee recommended that land advance of ₹183 crore for 12.43 acres made to MBDL be charged an interest of 18 per cent a year from September 2017 and monthly interest be collected from March 2018. In 2017, the Binny Board had given MBDL two years to return the advance.

On another advance of ₹60 crore paid to MBDL for 37 MW of windmill capacity, interest at 15 per cent will be collected monthly and six months time till September 30 has been provided.

On another seven-acre parcel for which ₹140 crore had been paid, the Committee has said the registration should be completed in six months.

In 2014, there had been a proposal to merge MBDL, in which M Nandagopal, Chairman, Binny Ltd, held the entire stake, with Binny Ltd. He also holds a majority stake in Binny.

Binny had then announced the merger plan. But the proposed merger did not go through as some of the minority shareholders had objected, said the official.

Binny also informed the BSE today of a proposal to borrow ₹31 crore from JM Financial Credit Solutions through SPR Construction Pvt Ltd.

SPR Group is a Chennai-based developer, which has entered into a joint venture with Binny for developing a 70-acre mixed use township in North Chennai.

This project is progressing well with commercial and residential developments are in advanced stages, said the senior official.

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