Promoter objects to Malvika Steel sale

The proposed sale of Malvika Steel seems to have hit a temporary hurdle, with promoter Vinay Rai objecting to the sale.

According to sources, Rai has moved the Debt Recovery Tribunal, which is auctioning the company to settle the dues that it owes to IFCI.

"Malvika Steel promoter has objected to the asset sale," a source close to the development said. It is not yet known as to what view the DRT has taken on Rai's objections.

Five bids were understood to have been received for the unfinished steel plant at Jagdishpur in Amethi.

The bids were scheduled to be opened on April 13 with state-run Steel Authority of India and Jindal Steel expressing interest to acquire the entire plant located on 740 acres. The reserve price was set at Rs 194 crore. The entire dues realised from the property are payable to IFCI.

The Rs 3,000 crore steel project was left half unfinished in 1998, within 10 months of getting off the ground. Malvika Steel owes nearly Rs 1,366 crore to IFCI.