The Bombay High Court issued a decree last month ordering Raipur-based company Vandana Udyog Ltd to settle all its loan dues - amounting to Rs 96,39,18,426 - with Mumbai-based finance firm IL&FS Financial Services by October 30 this year.
Vandana Udyog is run by brothers Subhash Chand Agrawal, Prahlad Agrawal, Gopal Agarwal, Vinod Agarwal, Ashok Kumar Agarwal and Vijit Agarwal.
IL&FS had in 2014 approached the court after Vandana Udyog defaulted on payments of a loan amounting to Rs 100 crore given out in 2012. In October 2015, the court had directed the Raipur company to pay back all dues. Since the firm failed to adhere to the court order, the HC issued a decree.
As per the suit filed in 2014, IL&FS had given a loan of Rs 100 crore to Vandana Udyog Limited on January 6, 2012. As per the agreement between the two companies, the loan was to be paid back in four quarterly instalments. Vandana Udyog was prompt with the first two payments, but thereafter, its post-dated cheques bounced. IL&FS then sent notices to the company. When Vandana Udyog still failed to settle its dues, the finance firm filed a suit in the HC that payment of Rs 70,90,43,702 plus interest was still pending.
In reply to the following court summons, Vandana Udyog and the Agarwal brothers told the court that they took loans of over Rs 1,300 crore from several banks and financial companies to set up a thermal power project. But, they couldn’t achieve the cut-off debt for it and, hence, the loans could not be repaid on time. They said they committed to giving the company’s shares under the Shares Pledge Agreement in 2012 at 2.5 times the disbursed loan amount. Under the decree, Vandana Group owes Rs 96,39,18,426 and the last date for the staggered payments is October 30.