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Administrator Srei extended the deadline for accepting firm resolution plans until November 25, while administrator
has set a deadline of November 28. and Srei Equipment Finance (SEFL) has attracted a lot of interest from potential bidders after the administrator restarted the sale process a few months ago. AM Mining India and ArcelorMittal-promoted Capri Global – two late entrants – sought more time for due diligence and to submit a 50-crore Earnings Deposit (EMD).
In a related development, Rajnish Sharma, the administrator of the Srei twins, informed the stock exchange on November 12 about a fraudulent transaction of 13,110 million pounds that he had reported to the bankruptcy court.
The notice said the administrator had received reports from “a professional agency appointed as an auditor of transactions stating that there are transactions in SEFL amounting to ₹ 13,110 crore, which are fraudulent in nature under section 66 of the Code”.
Similarly, last month, Nageshwara Rao I, administrator of Reliance Capital, raised concerns over loans of INR 1,755 crore given by the finance company to its group companies. The exchange notification of both administrators – Srei and RCap – is based on separate transaction audit reports submitted by BDO India.
In an email reply to ET, a spokesperson for the Srei Foundation dismissed these allegations of fraudulent transactions. “These claims, which are yet to be confirmed by the tribunal and pending adjudication, are rejected…All the transactions were genuine, with strong underlying assets through structured credit transactions carried out by Srei for the last 32 years, which are wrongly termed as fraudulent “.
The Srei administrator has asked resolution applicants to assign a value to transactions classified as fraudulent when submitting the plan.
Arena Investors and Varde Partners; and Sean Randava and Viren Shah jointly submitted a resolution plan for Srei. However, the sale process was restarted as they gave a conditional EMD. Until recently, ArcelorMittal was believed to be a strong contender, but it is unclear whether it will submit a plan. Last week, the Supreme Court ruled in favor of ArcelorMittal in the Odisha manure pipeline dispute with the Srei Group.
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