Apple Finance's Rs 240 cr city property on the block again

Apple Finance Ltd's 10-storeyed office complex in Mumbai has been put on sale again for recovery of five banks dues, including Bank of Baroda, Dena Bank, Uco Bank and United Bank of India. The auction will take place on October 13.

The 6,041 square metre property in Bandra-Kurla Complex, valued at Rs 240 crore, is in the possession of the Bombay High Court receiver since March 2003 as the Bombay Stock Exchange-listed Apple Finance failed to pay the banks total principal amount of Rs 75 crore and accrued interest for the debentures they held, a banking source said.

Earlier five attempts to sell the property were abandoned as the bids received were for amounts much below the Rs 240 crore reserve price.

The property was pledged as security against the debentures issued to the banks. Canara Bank, the trustee for the debentures which matured in 2001-02, offered interest rate of around 16 per cent.

During earlier auctions, the highest bids ranged from Rs 91 crore to Rs 193 crore. The court receiver is hopeful of receiving a bid this time for an amount closer to the reserve price.

The now defunct non-banking finance company (NBFC), Apple Finance is promoted by Atul Nishar-owned Apple Industries group and was engaged in leasing and hire purchase.

It surrendered its certificate of registration to carry on the business of an NBFC to the Reserve Bank of India in February 2002. The RBI announced cancellation of Apple Finance's registration in January 2004.

The shareholding of the promoters in Apple Finance is 25.58 per cent and that of the public stood at 60.50 as on June 30, 2005.

The company has reported its results for the quarter ended December 2004. The company had made a net profit of Rs 7.67 crore on Rs 7.74 crore of interest earned. It has not incurred any interest expenditure since October 2003.