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SBI approaches SC to protect its loans lent to RCom

Team SoOLEGAL 21 Mar 2018 7:55pm

SBI approaches SC to protect its loans lent to RCom

New Delhi:  SBI led consortium moved the SC, filing a plea against tribunal’s order, which was recently upheld by the Bombay high court.That order allows Ericsson to stake a claim on RCom Consolidated’s assets where as  SBI contests this saying that as a secured lender, its claim took precedence over others.

RCom owes Indian lenders Rs 42,000 crore.

 Apart from SBI, 24 other Indian lenders constitute the Joint Lenders Fora, which includes BoB, BoI, Canara Bank, Central Bank of India, PNB, IDBI Bank, UCO Bank, IOB, Dena Bank, Corporation Bank, Union Bank, United Bank, LIC and Barclays Bank.

They had initiated sale through bidding of RCom Consolidated’s assets. Reliance Jio Infocomm (Jio) had agreed to buy spectrum, cell towers and other infrastructure, including 1.78 lakh km of fibre optics line, of distressed RCom Consolidated for Rs 17,300 crore. Apart from monetisation of secured assets, two properties of RCom Consolidated in Delhi and Chennai were proposed to be sold to third parties for Rs 800 crore. “Thus, a total of Rs 18,100 crore will come directly to the secured creditors,” SBI said.

However, when Jio’s bid was finalised and banks thought they would get part of their NPA liquidated, Ericsson moved the arbitral tribunal and sought to restrain sale of RCom Consolidated’s assets on the ground that it had a claim of Rs 1,150 crore on the company. The tribunal on March 5 gave an order in favour of Ericsson and on March 8, the HC upheld it.

SBI has total dues of Rs 4,027 crore against RCom . In its appeal, filed through advocate Sanjay Kapur, it challenged the HC decision and said an unsecured creditor (Ericsson) could not steal a march over secured creditors like SBI. Kapur mentioned the petition for early listing on Tuesday and a bench headed by CJI Dipak Misra agreed to post it for hearing on Thursday. RCom has also moved the SC. SBI, which was not a party before the tribunal or the HC, rushed to the SC to protect its loans secured against RCom’s assets.

Tagged: SBI   RCom   SC   Ericsson  
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