NEW DELHI: Axis BankNSE 0.64 % has dragged two more LancoNSE 0.18 % group companies to the bankruptcy court for defaulting on their loans, intensifying an ongoing legal battle between the private sector bank and the Hyderabad-based infrastructure and energy group, two people familiar with the development said.
Axis had in August last year filed an insolvency petition against Lanco Amarkantak Power, a Chhattisgarh-based thermal power project of Lanco group, which the latter has challeng ..
India’s third-largest private sector bank has now lodged insolvency cases against Lanco Kondapalli Power, an Andhra Pradesh-based gas-fired power project, and Lanco Solar, which manufactures solar panels and sets up rooftop solar projects, the sources said. NCLT admitted its plea for admission of Lanco Kondapalli Power for insolvency proceedings last week.
The two companies collectively owe banks around Rs 4,000 crore, with Axis Bank accounting for a major portion of the loans disbursed to them, said the sources cited earlier. “As a policy, the bank does not comment on client specific matters,” a spokesperson for Axis Bank said in response to ET’s queries. Queries mailed to Lanco group remained unanswered until press time on Monday.
Lanco had opposed Axis Bank’s insolvency plea against the 1920-megawatt Lanco Amarkantak Power on grounds t ..
The RBI circular had mandated lenders to take defaulting borrowers to bankruptcy court within six months of them failing to repay their loans.
“The process is going to be fraught with litigation, as the company is clearly resisting going down the insolvency route and banks have no other options but to act tough,” a banker said on condition of anonymity.
Lanco Amarkantak Power owes banks around Rs 9,000 crore. “Kondapalli Power is one of the first cases to be admitted after the ..
For more information Top 10 Stock Advisory Company Indore
Axis had in August last year filed an insolvency petition against Lanco Amarkantak Power, a Chhattisgarh-based thermal power project of Lanco group, which the latter has challeng ..
India’s third-largest private sector bank has now lodged insolvency cases against Lanco Kondapalli Power, an Andhra Pradesh-based gas-fired power project, and Lanco Solar, which manufactures solar panels and sets up rooftop solar projects, the sources said. NCLT admitted its plea for admission of Lanco Kondapalli Power for insolvency proceedings last week.
The two companies collectively owe banks around Rs 4,000 crore, with Axis Bank accounting for a major portion of the loans disbursed to them, said the sources cited earlier. “As a policy, the bank does not comment on client specific matters,” a spokesperson for Axis Bank said in response to ET’s queries. Queries mailed to Lanco group remained unanswered until press time on Monday.
Lanco had opposed Axis Bank’s insolvency plea against the 1920-megawatt Lanco Amarkantak Power on grounds t ..
The RBI circular had mandated lenders to take defaulting borrowers to bankruptcy court within six months of them failing to repay their loans.
“The process is going to be fraught with litigation, as the company is clearly resisting going down the insolvency route and banks have no other options but to act tough,” a banker said on condition of anonymity.
Lanco Amarkantak Power owes banks around Rs 9,000 crore. “Kondapalli Power is one of the first cases to be admitted after the ..
For more information Top 10 Stock Advisory Company Indore
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