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Central Bank of India puts up Essar Steel, Bhushan Power & Steel up for sale

PW Bureau

The state-owned lender wants to dispose off Essar Steel India, Bhushan Power, Alok Industries and Bombay Rayon Fashions New Delhi: With the intention to recover dues worth Rs 3,321 crore, state-run Central Bank of India has put up four stressed accounts for sale, including Essar Steel India Ltd and Bhushan Power & Steel. The bank also wants to dispose off Alok Industries and Bombay Rayon Fashions in the process. The e-auction of all these accounts will take place on March 20. “In terms of the bank’s policy on sale of financial assets in line with the regulatory guidelines, we place the following accounts for sale to banks/ARCs/NBFCs/FIs,” Central Bank of India has said in a document inviting bids on its website. Bhushan Power & Steel owes Rs 1,550.07 crore towards the bank, according to the bid document as Alok Industries has an outstanding debt of Rs 1,251 crore. Bombay Rayon Fashions has an outstanding due of Rs 96.30 crore and Essar Steel owes Rs 423.61 crore.

Auctioning through Swiss challenge method

These accounts will be auctioned through the Swiss challenge method, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, on the without-recourse basis which relies on an existing offer of firm bid from an investor, who will have the right to match the highest bid, the bank said.