First case of an SFC exercising its powers under Section 29
Sicom Ltd, the state-owned finance corporation, has taken over the assets of Wholesome Bites, a Haryana-based company owned by the Bakemans group.
The Bakemans group is the third largest biscuit manufacturer in India.
This is the first time that any state finance corporation has exercised its powers under Section 29 of the State Finance Corporation Act, a Sicom media release said.
This section empowers financial institutions promoted by state governments to take over the assets of defaulters without going through the judicial process.
Sicom has a total exposure of about Rs 20 crore to the Bakemans group, which has been in continuous default since 1998-99 and unable to regularise its accounts.
Sicom took a decision to take over the properties of the group located at Patiala and Faridabad, which are charged to it, the statement added.
The Wholesome Bites plant located in Haryana was taken over on June 20 and Sicom has initiated action to take over the Patiala unit, which belongs to group flaghip Bakemans Industries.
Similarly, on June 24, Sicom took over the collateral security of the Nashik-based firm International Knitting.
In this case, Sicom was also assisted by the Bank of India under the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Sicom has till date taken over 200 units of defaulting companies an has also started providing its professional services to banks and financial institutions for take over of assets under the Securitsation Act, 2002.
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