State Bank of India has recently said that it will conduct e-auctions of 12 bad accounts very soon to recover dues of over Rs. 506 crore under sale to Asset Reconstruction Company (ARC) mechanism.
SBI in the sale notifications stated, “In terms of the bank’s policy on sale of financial assets, in line with the regulatory guidelines, we place these accounts for sale to ARCs/banks/NBFCs /FIs, on the terms and conditions indicated there against”.
The sale notice revealed that Aarya Industrial Products Pvt Ltd has dues of Rs. 72.24 crore and the e-auction of the account is slated to take place on March 16. “The sale of assets of Aarya Industrial Products Pvt Ltd will be made with the entire contingent obligation, if any, arising in future in respect of the said counterclaim,” the notice read.
Ten other accounts are scheduled to go under the hammer on March 26 against their collective outstanding dues of Rs. 383.23 crore. Asking the interested bidders to conduct due diligence of these assets with immediate effect, SBI said the sale is on ‘as is where is basis’ and the bank reserves the right not to go ahead with the proposed sale at any stage, without assigning any reason.