InvestorQ : Why has SBI initiated NCLT proceedings against Bajaj Hindustan?
sarah Leo made post

Why has SBI initiated NCLT proceedings against Bajaj Hindustan?

Rashi Mehra answered.
2 months ago

India’s largest bank by asset size, SBI, has initiated insolvency proceedings against one of the leading sugar companies in India, Bajaj Hindustan Sugar. The case is now pending at NCLT over outstanding dues to SBI and a clutch of other banks who are part of this consortium headed by SBI. Bajaj Hindustan, part of the Kushagra Bajaj group, currently owns 14 factories and has total capacity to crush 136,000 tonnes of sugarcane per day. Despite robust sugar prices, the fortunes of the company have hardly changed in last few years.

Bajaj Hindustan owes Rs4,800 crore to a consortium of banks led by SBI and which also includes names like PNB, Indian Bank and Central Bank of India. The next step is for the NCLT Court to admit the petition, after which a representative will be appointed and the process will start. It may be recollected that there was a closure order issued against Bajaj Hindustan and that had resulted in heavy loss of sales, production, revenues and profits between FY18 and FY20. That overhang still continues.