Record bid for NTC mills awaits BIFR nod

MUMBAI: The windfall that the National Textile Corporation (NTC) expected after the record bid by the Indiabulls Real Estate for two mills in Mumbai has not materialized till now as the Board of Industrial and Financial Reconstruction (BIFR) is yet to approve the bid that took place almost a month ago.
Indiabulls Real Estate has successfully bid for the two NTC mills 2.39-acre Poddar Mills and 8.37-acre Bharat Textile Mills for over Rs 1900 crore.
Considering that 50% of the total bid amount needs to be deposited within 45 days of the issuance of acceptance letter, the NTC has yet not issued this letter to Indiabulls Real Estate and hence the subsequent delay in depositing the money.
NTC chairman-cum-managing director K Ramchandra Pillai told TOI, "We are not to be blamed for the delay as the matter is before the BIFR, which is yet to give its approval for the deal. As soon as we get the approval, the letter of acceptance will be handed over to the successful bidder.''
Sources claimed that some forces were at play in delaying the deal. "If we calculate this amount with an interest of 10% per annum, the NTC has been losing anywhere between Rs 50 lakh to Rs 60 lakh a day due to delay in executing the deal,'' they claimed.
Senior officials said BIFR had sent a communication to the NTC that it would give a verdict on September 21. However, NTC is upset with the delay and has already brought this issue to the notice of the ministry of textiles.
V K Malhotra, member, BIFR, said, "We hear so many cases every day, hence it is difficult to recall this matter.''
Nirmal Singh, chairman, BIFR, was not available for comments despite several calls made by TOI.
Vipul Bansal, CEO of Indiabulls Real Estate Ltd, said: "We are eagerly waiting for the BIFR approval and want to complete the formalities at the earliest. We will furnish bank guarantee for the full amount within one day of getting the BIFR approval and would complete the entire payments well ahead of schedule given by NTC in the tender document.''
As per the directive of the BIFR dated May 18, any sale of NTC property has to be approved by the BIFR. The NTC has already challenged this directive before the Appellate Authority of Industrial and Financial Reconstruction (AAIFR). Prior to this directive, such deals got sealed within a few days. As soon after the bids were carried out, the asset sale committee of the NTC would meet and issue the acceptance letter. Because of the latest directive, the NTC has now to seek approval of the BIFR for their entire land sale.
According to NTC sources, "The NTC had filed the application for the sale before the BIFR in mid-August. We were called for the meeting on August 23 at the BIFR. It has been almost two weeks since the meeting but the BIFR is yet to decide on the matter.''