The group has prayed for relief and the DRT has issued a showcause notice, directing them to justify why relief prayed for should be granted
The banks are finally closing in on the Abhijeet Group to recover their money.
The Debt Recovery Tribunal (DRT) has summoned promoter Manoj Jayaswal to appear before it within a month regarding loans extended by Canara Bank and Vijaya Bank as Jayaswal's efforts to sell the debt-laden group's businesses like steel and power have fallen through.
Manoj Jayaswal, his son Abhishek Jayaswal along with the officials of the group's flagship company Abhijeet Projects, now renamed as Pathbreaking Projects, and Abhijeet Ventures have been summoned by the DRT in relation to the loans aggregating Rs 412.14 crore given to the group by Canara Bank and Vijaya Bank.
Of this, Rs 318.55 crore is due to Canara Bank while Rs 93.59 crore is payable to Vijaya Bank. The outstanding is subjected to 16.10% rate of interest, including 2% penal charge.
Abhijeet Group has prayed for relief and the DRT has issued a showcause notice to the group, directing them to justify within a month of the notice why relief prayed for should be granted.
Interestingly, both Canara Bank as well as Vijaya Bank had earlier jointly got the Central Bureau of Investigation book Manoj Jayaswal in a case of alleged commitment of fraud in getting the letter of credit issued by Canara and Vijaya Bank, totalling around Rs 300 crore.
The consortium of bankers as well as the private players like Srei Infra, KEC and Alstom are trying to salvage the troubled Abhijeet Group that, on a combined level, has turned into a massive debt of about Rs 12,000 crore.
The Calcutta High Court had earlier clubbed all the cases against all the group companies of the Abhijeet Group turning into a kind of class action suit.
However, the court had prevented a move to wind up one of the interlinked group companies by way selling assets, and the lenders had started looking for a strategic investor.
But just like most of the other recent cases where the banks have been trying to rope in new promoters for troubled companies such as Electrosteel, this too has failed.
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