Mumbai: The bench last week questioned the alacrity being shown by the lead lender IDBI Bank as CBI has charged C Sivsasankaran in a loan fraud case of IDBI Bank.
The bench also asked the bank consortium in what capacity did the proposer give the settlement plan and the “real intent” behind the one-time settlement offer.
The tribunal also sought explanation if the proposal could be admitted under the law.
Some serious allegations and questions have been raised with respect to the Siva Industries and Holdings case that has grabbed the limelight because public sector banks have agreed to settle with the promoter of Siva Industries a huge loan of Rs 4,863 crore at just Rs 323 crore with a recovery of only 6.5 per cent, Zee Biz reported earlier.
As per the report, interestingly the CoC member and biggest bank of the country SBI dissented against the settlement proposal.
Moreover, the case becomes even more important when the lenders are withdrawing the bankruptcy process of Siva Industries and Holdings.