Three days after taking over the Baddi unit of Arihant Industries, financial institution IFCI Ltd today took possession of the assets of East India Syntex Ltd under the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act as part of a strategy to crack-down on loan defaulters.
East India Syntex, promoted by NP Garodia and Rajiv Modi, was engaged in the production of cotton silk, polyester, fabrics and dyes at its facility in Rewari, Haryana and had also availed of working capital assistance from Canara Bank and Allahabad Bank, a press release from IFCI said.
"Although the company had developed all the facilities with the financial assistance from IFCI, it has not been paying its dues since April 2002. The dues of IFCI amounted to Rs 9.24 crore and dues of banks amounted to Rs 10.38 crore as on 31 March," it added.
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IFCI had initiated legal action including under the Securitisation Act since there was no response from the company.
The institution had also asked East India Syntex to submit a restructuring proposal, but the company did not respond within the stipulated deadline. A team of executive, with the help of local administration took over the Rewari plans today.