Early Times Report
Srinagar, Mar 26: Taking cognizance of a complaint filed by top banks including the Jammu Kashmir bank, the CBI intends to go beyond the complaint to ascertain how huge loans were given without knowing about the status of a stressed company involved in export basmati. The complaint accused REI Agro Ltd of cheating and misappropriation of funds.
The company owes the banks a whopping Rs4,200 crore. UCO bank believes a major portion of the loan extended to REI, the top exporter of basmati in the country has to be written off.
Indian Ovserseas bank, however, is defiant. It has warned sale of assets including land and plant at Rewari, Haryana if the loan was not paid back within two months. REI Agro has secured loan from twenty banks and some foreign financial institutions as well. The banks, according to reports, tried their best to sort out the problem last year in June. However, the efforts bore no fruit and the exercise was abandoned.
The Indian banks rejected a suggestion of taking control of the company after reviving it. |
