BackDalmia Bharat, UltraTech keen on Binani Cement despite ‘fraud’
Binani Cement's resolution professional has moved the NCLT, alleging suspect and fraudulent transactions in Binani Cement carried out by an independent forensic auditor
Premium
Kolkata: The takeover war for Binani Cement between Dalmia Bharat and UltraTech Cement Ltd refuses to ease as both the bidders remain committed to an acquisition despite the revelation of an alleged fraud involving the stressed asset.
Binani Cement’s resolution professional Vijaykumar V. Iyer has moved the National Company Law Tribunal (NCLT), alleging suspect and fraudulent transactions in Binani Cement carried out by an independent forensic auditor.
Dalmia Bharat Group CEO Mahendra Singhi said the company too had found some suspicious transactions during their internal evaluation but declined to quantify the amount.
At the time when UltraTech Cement was raising questions about transparency of the resolution professional, Singhi had a different view and supported the Iyer, saying there was no suppression of fact by the him and a transparent process was followed.
“A full lawful transparent process had been followed by the resolution professional and committee of creditors and accordingly all the bidders participated, and now Dalmia has submitted the 10% performance bank guarantee of the winning bid amount with the CoC," he said.
Dalmia Bharat has bid Rs6,500-6,600 crore for the Binani acquisition.
Singhi wondered whether UltraTech Cement would join hands with Binani in the wake of the alleged fraud. According to him, there is no legal provision under the insolvency and bankruptcy code to takeout the case which is already an admitted asset with the NCLT.
UltraTech CFO Atul Daga said though he had not seen those details of the alleged fraud, but said even then they remain interested on the asset. “Whatever revelation has come has taken place in the past and we want to start with a clean slate," Daga told PTI.
Daga, however, believes there was lack of transparency as UltraTech was not called for revised regulations before the voting of the Committee of Creditors. Singhi claimed that they have also taken care of small operational creditors but some of the MSME operational creditors have moved an application that their concerns were not addressed.
However, the counsel representing these small operational creditors said their interest was not taken care of and the amount involved would be about ₹ 700 crore. PTI BSM NN
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
