Binani Cement assets being undervalued: Creditors to SC

KOLKATA: The battle for

Binani Cement

intensified on Tuesday, ahead of the Supreme Court hearing on Friday (April 13). The Binani Operational Creditors’ Forum (BOCF) on Tuesday filed a petition in the SC alleging undervaluation of Binani Cement’s assets, while

Dalmia Bharat Cement

has written to banking regulator RBI to ask lenders not to deviate from the insolvency process.

Rajputana Properties, a subsidiary of Dalmia Bharat, also wrote to the heads of all lenders on Tuesday, requesting them not to violate the Insolvency and Bankruptcy Code, which it feels would go against Central Vigilance Commission (CVC) and Indian Bank Association (IBA) guidelines. Dalmia

Bharat CEO Mahendra Singhi confirmed that the company had written to the RBI and banks regarding the Binani Cement insolvency proceedings. However, he did not divulge the details of the letters.

A source said that Dalmia Bharat has requested the RBI to examine the matter appropriately and, if deemed fit, direct banks to not deviate from the IBC process. “Lenders were present in all the proceedings and are committed to the insolvency resolution process and have a contract with Rajputana Properties,” Dalmia Bharat is believed to have told the RBI.

It was also pointed out that if buyers are deterred from participating in the insolvency process owing to the conduct of some banks, it could impact proper price discovery of stressed assets in future and may not help in reducing the mounting non-performing assets.