Usha Martin management proposes escrow on steel biz sale proceeds

Putting sales proceeds in such deals is a standard mechanism but not the only mechanism, industry experts said

The Usha Martin management has proposed to the lenders to keep the sale proceeds from the Tata Steel transaction in an escrow account, amid allegations of opacity around end use of funds brought about by promoters Basant and Prashant Jhawar.

Confirming, Rohit Nanda, chief financial officer, said, "We have proposed this at the lenders' meeting on Friday. Lenders would now have to seek approvals internally."

Nanda, however, clarified that putting sale proceeds in an escrow account was stipulated by the Board on September 22 itself while accepting Tata Steel offer. Thus, the reason for mooting the proposal for putting the