Tuesday, June 25, 2013

Gopinath in talks with real estate developers to stave off debt



Raghuvir Badrinath  |  Bangalore  June 25, 2013 

Captain Gopinath, the low-cost aviation pioneer in India who has been facing intense heat from State Bank of India (SBI) to repay loans, is in the process of forming a joint development pact with promoters of Bangalore-based RMZ Corp to unlock value at one of his up-market residential properties in Bangalore.

Gopinath has firmed up plans for the pact with Raj Menda and Manoj Menda, managing directors as well as owners of RMZ Corp, one of the city’s leading privately held realtors, said sources.  

SBI, the country’s largest lender, had recently issued public auction notices to sell Gopinath’s pledged properties, owned by his family members as well as Deccan Cargo, to recover as much as Rs 259 crore. Gopinath, however, is understood to have got a stay on the auction.

SBI officials said they could not comment on the auction process as it was sub judice. While Gopinath was not reachable for his view, the promoters of RMZ Corp said they could not comment as it was a private transaction between families. RMZ Corp, over the past years, has acquired and developed over 13 million square feet and today manages a property portfolio in excess of $3 billion (Rs 17,940 crore) in real estate value across India.

The property which is being spun off into a joint development is spread across 16,200 sq ft and is situated just off Vittal Mallya Road, one of the premium localities in Bangalore, where the prices are around Rs 21,000 per square feet. SBI had put a value of close to Rs 33 crore for this property, which is technically owned by Gopinath’s wife Bhargavi Gopinath.

This property is in close to where UB Group chairman Vijay Mallya is building towering uber-luxurious residential apartments — Kingfisher Towers— in a joint venture with Prestige Developers, after razing down his ancestral bungalow.

Even as this development is picking up pace, realtors are indicating a price as close to Rs 30,000 per square feet when the building is completed.

The move to go in for a joint development comes after protracted attempts by Gopinath to restructure thedebt failed to yield any result.

Gopinath is understood to have raised close to Rs 500 crore debt for his second major venture – Deccan Cargo and Logistics– after selling out Deccan Aviation to Kingfisher Airlines. 


Deccan Cargo had also raised close to Rs 135 crore from Reliance Industries through the equity route. 

“While the concept of connecting industrial towns to cities through the air cargo route had immense potential, the execution did not fall into place, as a result of which the venture went into a tail-spin and had to be suspended,” senior industry analysts explained.

Consumer forum can use forensic examination to settle disputes



Jehangir Gai  June 23, 2013 Last Updated at 21:16 IST

consumer forum has to follow a summary procedure for the adjudication of complaints. But at times, the authenticity and credibility of the evidence is challenged as fabricated. In such a situation, sometimes, a consumer forum refuses to weigh a complaint on the grounds that it involves adjudication of complicated facts. It, instead, asks the parties to approach the regular civil court. This is incorrect.

In such a case, a consumer forum isn't helpless; it can obtain evidence by referring the documents for examination by experts.


 This significant ruling was given by a National Commission bench of judges K S Chaudhari and Suresh Chandra in revision petition number 2008 of 2012 on February 11, 2012 (The New India Assurance Co Ltd v/s Sree Sree Madan Mohan Rice Mill).

The rice mill claimed a fire had broken out at its office-cum-manufacturing unit. An insurance claim was lodged for the loss. The insurance company didn't settle the claim. Aggrieved, the mill filed a complaint before the West Bengal State Commission, claiming a compensation of Rs 99 lakh.

To support and substantiate its claim, the mill relied on photographs of the fire and the loss it had caused. The insurance company questioned the authenticity of photographs, alleging these had been manipulated and fabricated. 


It claimed the investigator appointed had approached the Central Forensic Laboratory to examine the photographs, but the laboratory had declined to examine those, unless the police or judicial authorities requested such a move. 

Therefore, the insurer urged the State Commission to refer the photographs to the laboratory for forensic examination.

The mill opposed this application, claiming the surveyor hadn't raised any doubt about the photographs; neither had the insurance company made such an allegation in its reply filed before the State Commission. 


The mill contended the application was aimed merely at delaying proceedings. Upholding the mill's contention, the State Commission rejected the insurance company's application.

Subsequently, the insurance company filed a revision petition before the National Commission, challenging the State Commission's refusal to refer the photographs for examination.

The National Commission said the insurance company had alleged the photographs had been tampered and manufactured by super-imposing one photograph over another so that a claim could be made. 


These photographs were taken by the mill owner, not by an independent person. Even if the surveyor didn't question the genuineness of the photographs, the insurance company's primary defence was its challenge to the photographs' credibility.

 Under such circumstances, the National Commission said the application filed by the insurance company shouldn't have been rejected.

Further, it said the Consumer Protection Act empowered redressal tribunals to seek the report of an analyst from an appropriate laboratory. If the photographs were referred to the laboratory for forensic examination, it would help in arriving at a correct conclusion, it added.

With this, the National Commission set aside the State Commission's order and directed it to send the disputed photographs to the Central Forensic Science Laboratory for examination. Since the insurance company had disputed the validity of the photographs, the commission directed it to bear the cost of the examination.

This judgment is significant: Even in cases in which documentary evidence is disputed, a consumer forum has the power to adjudicate the complaint by seeking a report from a competent laboratory. 


The cost of such an examination wouldn't be a burden on the consumer, as it would have to be borne by the party that challenges the document's validity. If the document is found to be false or fabricated, the consumer would definitely be penalised.

Orchid Chemicals begins corporate debt recast process

A file photo of Orchid Chemicals promoter Raghavendra Rao. Photo: Hemant Mishra/Mint
A file photo of Orchid Chemicals promoter Raghavendra Rao. Photo: Hemant Mishra/Mint

S Bridget Leena : Live Mint :Tue, Jun 25 2013. 12 00 PM IST

The Chennai-based company told BSE that the process has been initiated through State Bank of India


Orchid Chemicals and Pharmaceuticals Ltd has been referred to the corporate debt restructuring (CDR) cell of the Reserve Bank of India after liquidity constraints affected operations.
The Chennai-based company told BSE that the process has been initiated through State Bank of India. Promoter Raghavendra Raoholds a 32.28% stake in the company, of which about 87% has been pledged.
The company did not have sufficient cash flow even to meet working capital requirements, said Subrata Sarkar, an analyst at Dalmia Securities Pvt. Ltd.
“We have close to Rs.2,700 crore of debt,” said Rao, managing director.
“In a way it is good, at least the company gets to restructure its debt and get time on its interest payments,” said Sarabjit Kaur, an analyst with Angel Broking Ltd.
“The deal money from Hospira Inc. will enable us to reduce some debt,” said Rao without providing details.
In August 2012, Orchid said it had agreed to sell its active pharmaceutical ingredients business and research and development facility to US-based Hospira for $200 million as it was severely constrained by debt and working capital issues.
However, IDBI Bank Ltd approached the Madras high court seeking an order that Orchid settle its dues before the deal went through, which delayed the sale. With that issue being sorted out, the transaction is expected to be completed shortly, said Rao.
This is not the first time that Orchid has had debt troubles. The company sold its generic injectable formulation business to Hospira for Rs.1,800 crore after its debt more than doubled to Rs.2,985 crore in 2009-10 from Rs.1,029 crore in 2005-06.
Orchid repaid close to Rs.1,000 crore of debt and increased reserves by Rs.300 crore from the proceeds.
The company reported a loss of Rs.275 crore for the fiscal ended 31 March 2013, compared with a profit ofRs.103 crore the previous year.
“This is a temporary relief not a solution and Orchid had sold its lucrative business to Hospira earlier and this time there is no way out,” said Sarkar.
Orchid fell 0.89% to Rs.50.10 on Monday while the benchmark Sensex fell 1.24 % to 18,540.89 points
TNN | Jun 25, 2013, 05.55AM IST
 Orchid Chemicals is seeking recourse with its lenders and consequently has made a reference to the corporate debt restricting (CDR) cell, a body constituted by RBI to ensure restructuring debt of an organization.

The company made a regulatory filing with the stock exchanges on Monday whereby it said, "due to continuing liquidity constraints and pressure on operations, Orchid has initiated the process of restructuring its debt and accordingly the company has made reference to the CDR Cell throughSBI." Orchid, it is learnt, has a total debt of nearly $500 million or around Rs 2,800 crore. Of this nearly $200 million would be paid to lenders when it receives funds for sale of some businesses to Hospira over the next few days. It received all no-objection certificates, including clearance from IDBI Bank for the agreed sale of various assets to Hospira Inc 

The delay in concluding the August 2012 deal, under which Orchid was supposed to sell various assets, including active pharmaceutical ingredients business and a R&D facility to Hospira for $200 million, had resulted in a severe cash crunch. 
The deal was supposed to have been completed by March 2013, which now has a June 30 deadline. 

Orchid which has nearly 20 lenders, through this CDR is seeking bank's support to restructure the $300 million residual debt.
Debt strapped and cash starved Orchid Chemicals incurred a massive net loss of Rs 132.27 crore for the quarter ended March 2013. The company had earned a net profit of Rs 20.55 crore in the corresponding quarter last year. Revenues during the quarter dropped 45.36% at Rs 268.15 crore from Rs 490.78 crore.

Books :A tough road to justice

My Beloved World: Sonia Sotomayor


Prabha Sridevan : The hindu ;25 June 2013



An extraordinary life, an extraordinary person, and a wonderful read. My Beloved World is by Justice Sonia Sotomayor, whose appointment to the U.S. Supreme Court created a record of sorts.

The book starts dramatically and poignantly with the writer, barely eight years, listening to her parents arguing about how to give her the insulin shot. She is a juvenile diabetic. The parents fought, her father was an alcoholic and she writes, “My mother’s pain would never heal, the ice between them would never thaw because they would never find a way to acknowledge it. Without acknowledgement and communication, forgiveness was beyond reach.”

As she writes, her tone and voice seem to change, she slowly growing from the eight-year-old with whom we walk the journey and see her beloved world. It is a fascinating device, which does not seem to be the result of effort, but almost as if Sonia the child starts sharing her life with us and grows through the pages.

When she was diagnosed as a diabetic, the family receives it as “a catastrophe of tragic dimensions.” But she wouldn’t waste time. “I’d better get to work right now. That urgency always stayed with me.”

Because of the circumstances of her childhood, she had missed the joys of reading the world’s classics which her friend and room-mate had read, while she had been reading Reader’s Digest. “I’d have to remain a student for life.” These scenes are shared without self-pity, with candour and sometimes with a wry humour. Witness how the scene where the disinterested saleswoman looking at the two Puerto Rican women, the mother and daughter, suddenly transforms when the mother says her daughter is going to Princeton. “I saw the saleswoman’s head turn round as in a cartoon double-take.”

She talks of the incongruity of being at Princeton. “There were vultures circling, ready to dive when we stumbled.” She lives the difficulties of “minority students” for us. At the same time she warns against overkill of protests that may become an end in itself and lose potency if used routinely. “Quiet pragmatism of course lacks the romance of vocal militancy. But I felt more a mediator than a crusader.” She wins the Moses Taylor Pyne Honor Prize and disarmingly tells us that she realised it was “the highest award that a graduating senior can receive”, and that she would have to give a speech. “With the exception of our small cluster of ‘Third World’ friends and family, the faces were uniformly white. It was a fitting reminder of what I was doing there.” The speech is simple and hits home the message that Princeton (and indeed the world) would “be further enriched by being broadened to accommodate and harmonize with the beat of those of us who march to different drummers.” And to those who march differently, the message is “As you discover what strength you can draw from your community in this world from which it stands apart, look outward as well as inward. Build bridges instead of walls.” Do not let your identities isolate you; rather integrate with your identities intact. This theme runs through the whole book, there is no apology, no excuses for the difference and its impact, there is rather a pride and a determination.

Marriage
Then came the marriage and her law practice. “If the long hours were straining our marriage, I was too preoccupied to notice.” You cannot miss a word or a line. Note this. She writes about her friendship with a defense lawyer, “We’d talk shop: the ins and outs of our cases, the temperaments and tempers of the judges we dealt with, the routine sexism that was an occupational hazard,” and about the practice of law … “there is a place for idealism in the practice of the law. It is what makes many of us enter the profession in the first place, it is certainly what drives some of us lawyers to become judges.” The marriage breaks. He says “even doing the best I can, I’m not going to catch up with you.” She is touched by his generosity, she writes. This is something that marks her out, this spirit of super-fairness. “You didn’t need me” he says and she writes he wasn’t wrong.

Can women “have it all” is always a burning debate. “…it is a myth we would do well to abandon, together with the pernicious notion that a woman who chooses the one or the other is somehow deficient.”

She gives her best to every case and her closing speech in a child pornography case: “When you sell a stick of marijuana, the buyer and the seller can make free choices. The children could not.”

There is a constant attempt for self- improvement. Her mother and she share an uneasy relationship, “But there is no better indicator of progress, or cause for pride, than the thaw in relations with my mother.”

About her first day as District Judge Sotomayor, she writes that her knees were knocking but once she posed the first question to the litigants, the knees stopped knocking. And in her words “I think this fish has found her pond.” Indeed it had. My Beloved World stops here. It is not a strategic decision alone but an aesthetic decision too. The narrative would have changed track thereafter.

Is this a review?

 Not quite. It is an introduction to a remarkable person: a juvenile diabetic with troubled parents, an affirmative action student belonging to an ethnic minority, a woman who rose to the very top excelling all the way through Princeton and Yale.

 It is also an introduction to a person with remarkable simplicity, fairness, and blazing integrity. Virtues sorely lacking today.

(Prabha Sridevan is a retired judge of the Madras High Court)
Keywords: My Beloved World, Justice Sonia Sotomayor

Sunday, June 23, 2013

Legal Binding / Judicial discipline and Contempt of Court – a reality


Court

Advocate Rajnish R. Singla : Tax Guru :Saturday, June 22, 2013, 12:00

In order to discuss, legal binding / judicial discipline and Contempt of Court a reality. It will be imperative to go through the Constitution of India.

The relevant provisions of The Constitution of India are as follows –

Article 141- Law declared by Supreme court to be binding on all courts- The law declared by Supreme court to be binding on all courts within the territory of India.

“It is impermissible for the High Court to overrule the decision of the Apex Court on the ground that Supreme Court laid down the legal position without considering any other point. It is not only a matter of discipline for the High Courts in India, it is mandate of the Constitution as provided in article 141 that the law declared by the supreme Court shall be binding on all courts within the territory of India”, Suganthi Suresh Kumar v/s. Jagdeeshan, (2002) 2 SCC 420

“The judicial discipline to abide by Supreme Court decision cannot be forsaken under any pretext by any authority or court, be it even High Court”, State of Himachal Predesh v/s Paras Ram, AIR 2008 SC 930.

Article 226 – Power of High Courts to issue certain writs

(1) Notwithstanding anything in Article 32 every High Court shall have powers, throughout the territories in relation to which it exercise jurisdiction, to issue to any person or authority, including in appropriate cases, any Government, within those territories directions, orders or writs, including writs in the nature of habeas corpus, mandamus, prohibitions, quo warranto and certiorari, or any of them, for the enforcement of any of the rights conferred by Part III and for any other purpose

(2) The power conferred by clause (1) to issue directions, orders or writs to any Government, authority or person may also be exercised by any High Court exercising jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories

(3) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under clause (1), without

(a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and

(b) giving such party an opportunity of being heard, makes an application to the High Court for the vacation of such order and furnishes a copy of such application to the party in whose favour such order has been made or the counsel of such party, the High Court shall dispose of the application within a period of two weeks from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the High Court is closed on the last day of that period, before the expiry of the next day afterwards on which the High Court is open; and if the application is not so disposed of, the interim order shall, on the expiry of that period, or, as the case may be, the expiry of the aid next day, stand vacated

(4) The power conferred on a High Court by this article shall not be in derogation of the power conferred on the Supreme court by clause ( 2 ) of Article 32

“The law declared by the High Court is binding on all subordinate courts within the State;” East India Commercial Co. v. Collector of Customs, AIR 1962 SC 1893:

Legal maxim of natural justice is Res judicata pro veritate accipitur which means the decision of a court of justice is assumed to be correct; a thing adjudicated is received as true. A judicial decision is conclusive evidence inter parties of the matter decided.

“In disposing of the quasi-judicial issues before revenue officers, they are bound by the decision of the appellate authorities. The order of the appellate Collector is binding on the Assistant Collectors working within his jurisdiction and the order of the Tribunal is binding upon the Assistant Collectors and the Appellate Collectors who function under the jurisdiction of the Tribunal. Further, the principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the appellate authority is not ‘’acceptable’’ to the department-in itself an objectionable phrase-and is the subject-matter of an appeal can furnish no ground for not following it unless its operation has been suspended by a competent Court. If this healthy rule is not followed, the result will only be undue harassment to assessee and chaos in administration of tax laws.” UOI v/s. Kamlakshi Finance Corporation Ltd. (1991) 55ELT 433(SC-3J)

“The principles of the judicial discipline require that the order of the higher appellate Authority should be followed unreservedly by the subordinate authority and it cannot be disregarded simply because the said appellate order is subject matter of appeal which is pending.” Aay Sons Elastomerics India and others v. State of UP and others 1995(29) ATJ-561

“Special appeal to Supreme Court has been filed against the judgment of this court declaring the provisions of Section 8-A(4) ultra vires. This, in our opinion, is no ground for not giving effect to the declaration of law by this Court.  As long as the judgment of this Court remains undisturbed, the Sales Tax Officer is bound to give effect to this declaration of law, and he cannot take over behind filing of appeal in order to relieve himself of his obligation to do so.” Metal Containers (P) Ltd. v/s. State of U.P. and another 1979STJ168

Article 129-  Supreme Court to be court of record – The Supreme Court Shall be a court of record and shall have all the powers  of such a court including the power to punish for contempt of itself.

Article  215- High Courts to be courts of record – Every High Court shall be a court of record and shall have all the powers of such a court including the power or punish for contempt of itself.

Contempt of court means civil contempt or criminal contempt.                               

“Civil contempt means willful disobedience to any judgment, decree, direction , order, process of a court or willful breach of an undertaking given to a court .                             

“Criminal contempt ” means the publication (whether by words spoken or written or by sings or by visible representations , or otherwise ) of any matter or the doing of any other act , what so over which -

(i)- scandilises or tends to scandalise , or lowers or tends to lowers or tends to lower the authority of any Court; or

(ii) prejudices, or interfere with, the due course of any judicial proceeding ; or

(iii) interfere or tends to interfere with, or obstruct, the administration of justice in any other manner.

“Contempt of Court is disobedience to the Court, by acting in opposition to the authority, justice and dignity thereof. It signifies a willful disregard or disobedience of Court’s order; it also signifies such conduct as tends to bring the authority of the Court and the administration of the law into disrepute.” B. Mishra V. B Dixit, AIR 1972 SC 2466, 2468.

“Under the common law definition, “contempt of Court’ is defined as an act or omission calculated to interfere with the due administration of justice. This covers criminal contempt (that is acts which so threaten the administration of justice that they require punishment) and civil contempt ( disobedience of an order made in a civil cause).” Vinay Chandra Mishra, In re, (1995) 2 SCC 584.                                                                

Famous Legal  maxim of natural justice is Dura lex sed led; “the law is hard but it is the law”.

Consistency is the corner stone of the administration of justice. It is consistency which creates confidence in the system and this consistency can never be achieved without respect to the rule of finality. It is with a view to achieve consistency in judicial pronouncements, the courts have evolved the rule of precedents, principle of stare decisic etc. these rules and principles are based on public policy and if these are not followed by courts then there will be chaos in the administration of justice; Government of Andhra Pradesh v/s A. P. Jaiswal, AIR 2001 SC 499: (2001) 1 SCC 748:

“It is trite that what cannot be done directly, cannot be done indirectly.”  Sangram Singh P Gaekwad v/s Santadevi P Gaekwad (2005) 57 SCL. 476 (SC) ,

From the perusal of above provisions and judicial decisions it is clear that The law declared by Supreme court to be binding on all courts within the territory of India. The law declared by the High Court is binding on all subordinate courts within the State; and The L aw declared by Tribunal is binding on all subordinate courts and authorities.

In case anybody defies the authority or dignity of a court than The Supreme Court and The High Courts have the power to punish for contempt.

May be, The Commercial Tax Department of The State of Uttarakhand is not aware of The Honorble Supreme Court’s decision in L. Mahurkar v/s The Bar Council of Maharashtra. 101 STC 541; The Uttarakhand High Court’s decision in Commissioner  Commercial Tax Uttarakhand , Dehradun V/s Jalpac India Ltd. Mota Haldu, Haldwani (2009) 10VLJ 37 (Utt). The Uttarakhand High Court’s decision in Gitanjali Associates V/S State of Uttarakhand and  others. (2011) 16 VLJ 209 (Utt) and The Commercial Tax Tribunal, Uttarakhand (Haldwani Bench’s) Decision in Appeal No.23 / 2013 A. Y. 2012-13 M/s Bee Key Distributors Pvt. Ltd. Transport Nagar Haldwani v/s The Commissioner Commercial Tax Uttarakhand Dehradun.

Tightened recovery laws will help banks deal with bad loans



K.Ramkumar: BL;june 13, 2013

Key amendments to recovery laws such as restricting the number of adjournments that defaulting borrowers can seek in the Debt Recovery Tribunal are likely to help banks to step up their bad loans recovery drive.
Another amendment allows banks to purchase collateral (pledged with the bank by a defaulter-borrower) at the reserve price in case no party comes forward to bid at the auction.
With the Finance Ministry asking banks to intensify their bad loan recovery efforts, the above mentioned amendments, which were carried out in December 2012, are expected to come in handy, say bankers.
Under the amendment to the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, a Tribunal can grant adjournments if sufficient cause is shown.
But such adjournment can be granted no more than three times to a party and where there are three or more parties, the total number of adjournments cannot exceed six.
According to M.R. Umarji, Chief Legal Adviser, Indian Banks’ Association, due to the adjournments given by the Debt Recovery Tribunals (DRTs), banks were facing long delays in getting orders for recovery.
So, to restrict the adjournments given by the DRTs, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, has been amended.
“This provision (restriction on adjournments) is already there in the Civil Procedure Code. When the amendments were made in the Civil Procedure Code, the lawyers went on strike. “There were objections to that amendment, which was made to ensure that the delays in our system are curtailed and justice is given expeditiously,” said Umarji.

FACING HURDLES

Before the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, banks were facing hurdles in selling the collateral/security of influential defaulter-borrowers as the latter ensured that no local party bid for their assets at the auction.
However, after amendment to the Sarfaesi Act, which was also carried out in December 2012, the above mentioned manipulation has been taken care of as banks can themselves purchase the collateral/security at the reserve price in case no bidder comes forward. “Prior to the amendment, there were cases whereby banks took possession of securities under the Sarfaesi Act and put them up for auction. But the auction failed as nobody came forward to purchase the securities.
“Banks repeated the exercise again but the outcome was no different. In many cases, the borrowers are able to spread the word around that this is my property, so nobody should bid and purchase it. Locally, they (borrowers) are powerful,” said Umarji.
Now, under the amended Sarfaesi Act, if the public auction to sell the property fails, the bank itself can purchase it at the reserve price and recover the debt to the extent of the reserve price.
ramkumar.k@thehindu.co.in
(This article was published on June 13, 2013)
Keywords: Key amendments, recovery laws, number of adjournments, defaulting borrowers, Debt Recovery Tribunal, bad loans recovery drive, NPAs

United Bank not to lend to infra firms as bad loans rise





United Bank of India has decided to stop fresh lending to infrastructure sectors such as iron and steel, airlines, real estate and textiles.

According to Archana Bhargava, Chairperson and Managing Director of UBI, non-performing assets in these sectors have been going up and the recovery has been poor.

She, however, clarified that the bank would continue to lend to public sector companies in these sectors having a lower risk profile.

According to a senior official of the bank, some of the existing long-term loan accounts in these sectors are being restructured. Of the total lending in 2012-13, the bank’s exposure to the power and iron and steel sectors stood at 13 per cent and 6.91 per cent, respectively.
Last fiscal, UBI’s net NPAs stood at Rs 1,970 crore.

While the bank has made a provisioning of Rs 846 crore for NPAs in the MSME (micro, small and medium enterprises) sector, the provisioning with regard to gems and jewellery, chemicals, hospital and solar energy sectors amounts to Rs 350 crore, Rs 150 crore, Rs 85 crore and Rs 65 crore, respectively, Bhargava added.

E-auction
Meanwhile, according to Bhargava, the bank is planning to start e-auctioning of mortgaged properties within a month to recover its bad loans. UBI will use public sector company MSTC’s auctioning platform for this.

ayan.pramanik@thehindu.co.in
(This article was published in the Business Line print edition dated June 22, 2013)