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BGR Energy, Oberoi Realty deny involvement in loan scandal

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BS Reporter Mumbai
Last Updated : Jan 20 2013 | 1:30 AM IST

Real Estate firm, Oberoi Realty Ltd and a Chennai-based manufacturer of capital goods, BGR Energy Systems Ltd have denied having any connection with Money Matters (India) Pvt Ltd and recently exposed housing loan scam scandal.

In a routing BSE filing, BGR said, “The company strongly deny any connection whatsoever with the said scandal and reports to the contrary are absolutely false / defamatory / malicious and illegal.”

Oberoi Realty filed saying it was a zero debt company and currently has no loan outstanding whatsoever with any bank or financial institution. Oberoi Realty (including its SPVs) has no debt from any bank or financial institution since the last two years.

Oberoi Realty has not taken any loan from LIC, LIC Housing Finance Ltd, Bank of India, Central Bank of India and Punjab National Bank, a company statement said. The company also stated that it has never delayed with “Money Matters” for any transaction whatsoever.

The clarification was in response to the reports in print and electronic media indicating some connection with bribery / illegal gratification scandal involving LIC Housing Finance Limited and some PSU banks.

BGR Energy Systems executes engineering, procurement and contracting (EPC) contracts for power projects and executes turnkey contracts to supply balance of plant (BOP) equipment, services and civil works for power generation.

“We wish to state that the working capital loan was sanctioned to us by consortium of banks in which Bank of India is a participating bank. The loan was syndicated by IDBI Bank, who is also the leader of the consortium. Working capital loan to the extent of Rs 500 crore was sanctioned by Bank of India vide sanction letter dated 14.10.2008,” a statement from the company said.

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BGR Energy Systems Ltd and the group companies have not dealt with Money Matters India Pvt Ltd, Mumbai, for handling for processing any investments / loan etc. from any public sector financial institutions and banks at any point of time.

“We have not resorted to any illegal or unethical methods to get our working capital sanctioned for our business purposes. We strongly deny all the allegations by certain electronic and print media reports of involvement of BGR Energy Systems Ltd and group companies with regards to the present illegal gratification scandal,” the statement added.

The company has replied to the Economic Offences Wing, Central Bureau of Investigation, Mumbai, clarifying the position with regard to fact that the group companies have no involvement in the aforementioned scandal.

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First Published: Nov 25 2010 | 12:36 PM IST

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