ICICI Bank today filed a suit in the debt recovery tribunal (DRT) to recover the outstanding loans against the A C Muthiah group company SPIC Petrochemicals. The company owes Rs 289 crore to the bank along with interest and foreign currency guarantees.
Muthiah has recently taken over as chairman of the trade and industry body, the Federation of Indian Chambers of Commerce and Industry. SPIC Petrochemicals is promoted by SPIC Ltd which is the flagship of the A C Muthiah Group.
ICICI Bank had earlier sent a recall notice to SPIC Petrochemicals demanding that it repay the amount on the grounds that its petrochemicals project (PTA and PFY) was unviable.
The institutional loans to the company exceed Rs 1,100 crore. Apart from ICICI Bank, the other major lenders to SPIC include the Industrial Development Bank of India at Rs 553 crore and State Bank of India at Rs 119 crore. Also in the lenders