BGR Energy denies any malpractice in securing loanNovember 25th, 2010 - 8:16 pm ICT by IANS
Chennai, Nov 25 (IANS) City-based power sector engineering, procurement and construction company BGR Energy Systems Thursday said it did not resort to illegal or unethical means to get a Rs.500-crore working capital loan from Bank of India, whose official was taken into custody over an alleged loan scam Wednesday.
“We have no clue as to how our name got involved in the issue. Our total working capital loan from Bank of India is Rs.500 crore. We have utilised only Rs.20 crore of the fund-based limit,” P.R. Easwara Kumar, chief financial officer, told IANS.
“Our loan is standard asset and not an NPA,” Kumar said. The loan was sanctioned in 2008. According to him, the working capital loan was sanctioned by a consortium of banks, of which Bank of India was one.
Central Bureau of Investigation (CBI) had arrested the bank’s general manager R.N. Tayal Wednesday for allegedly receiving bribes while approving loans. Tayal was heading one of the bank’s large corporate branches in Chennai.
The finance ministry, meanwhile, has called from Bank of India details of three accounts pertaining to OPG Power, BGR Energy and Ashapura Minechem, officials said. Among these, Bank of India says only one has a bad or doubtful loan component.
Kumar also said his company had not dealt with financial services firm Money Matters — also under the probe lens — for handling or processing any investment or loan and that the same has been communicated to the investigative agency Thursday.
According to him, the firm’s outstanding working capital loan is around Rs.1,500 crore and the total sanctioned limit by the consortium of 20 banks is Rs.4,500 crore. None of the group companies had any dealings with Money Matters.
- Loan scam: CBI expands probe, serves notices on 21 companies - Nov 25, 2010
- Loan scam: CBI serves notice on 17 companies - Nov 25, 2010
- CBI files charge-sheets in housing loan scam - Oct 04, 2011
- Indian Bank to convert Rs.400 crore preference shares to equity - Jan 30, 2012
- BGR Energy cuts capex for JVs with Hitachi - Aug 09, 2012
- BGR Energy lowest bidder for NTPC's mega tender - Sep 15, 2011
- IOB plans recovery of Rs.1,500 crore from sticky accounts (Lead) - Jan 28, 2012
- BGR Energy bags Rs.2,168 crore order - Oct 25, 2010
- Air India seeks long-term convertion of loans - May 20, 2011
- SBI stock plunges on talk of loan to Kingfisher - Feb 22, 2012
- NTPC order will be met with local, imported machines: BGR - Sep 15, 2011
- CEO's arrest may hit future plans of LIC Housing Finance - Nov 25, 2010
- Huge jump in Indian Bank's NPA - May 11, 2012
- Indian Bank to raise $500 mn for overseas operations - Jul 29, 2011
- Air India board approves issue of preferential shares to lenders - Dec 29, 2011
Tags: , , , , , , , , , , , , , , , , , , ,