THIRUVANANTHAPURAM: Finally, the State Government also seems to have woken up to block the designs of Somani Group, the current promoters of the Kundara-based Aluminium Industries Ltd(ALIND), to plunder the company’s assets and landed property worth thousands of crores of rupees.
The government has now filed a statutory Objection before the Board for Industrial and Financial Reconstruction (BIFR) in New Delhi against the Draft Rehabilitation Scheme (DRS).
The move by Somani Group to alienate landed properties and other assets worth thousands of crores of rupees of the company which has units in Kerala, Hyderabad, Odisha and properties in Maharashtra and Tamil Nadu has been going unchecked so far.
The objection filed before the BIFR, a copy of which is with ‘Express’, states that the Government representatives had raised objections in the meeting convened by the Official Appraiser (OA) at Ernakulam on September 27, 2013, and had categorically emphasised the need for conducting a detailed valuation of the assets of the company, a techno-economic valuation study and also had asked to elaborate the specifics on concession being sought from the government.
The government has stated that the DRS was not prepared in accordance with the guidelines issued by the BIFR on April 30, 2008.
It has also objected to the circulation of the DRS citing that the Board ought to have conducted a study on its own before circulating the DRS.
While the Draft Rehabilitation Scheme states that net fixed assets as per the balance sheet dated March 2012, is just Rs 1.20 crore against which the principal outstanding of secured loan is `119.99 crore, the State Government itself has put the real estate value of Alind’s properties as running into more than `1,300 crore.
The company, in fact has more than 160 acres of prime landed property including 98 acres of land in Hyderabad near the Cybercity which would cost at least Rs 50 lakh per cent amounting to a total of nearly Rs 5000 crore.
Interestingly, the company has not taken valuation of its assets by the Government or bank-approved valuers in the recent past.
The present management of the company, Somani Group, could not meet the responsibilities as per sanctioned scheme of 1989. Consequently, the Board for Industrial and Financial Reconstruction also had declared the sanctioned scheme of 1989 as a failure.
The promoters Somani group had changed the shareholding pattern of Alind illegally and the same was ignored in the DRS, the Government has stated.
Somani group instead of furnishing the details of the liabilities, principal, interest and other charges of the company (Alind) presented only the principal outstanding against the banks/ financial institutions.
Details of liabilities to the statutory authorities including the State government, Kerala State Electricity Board, EPF, ESIC etc are not given.