Defaulter industries owe Rs.8 bn to Madhya Pradesh

June 18th, 2008 - 9:40 pm ICT by IANS  


Bhopal, June 18 (IANS) Defaulter industries in Madhya Pradesh owed Rs.8 billion ($190.5 million) to Madhya Pradesh State Industrial Development Corp (MPSIDC), said a top official here Wednesday. The Economic Offences Wing (EOW), which is investigating the alleged irregularities in loan distribution, has recently filed complaints against three such industries in the court, MPSIDC managing director Praveen Garg told reporters.

MPSIDC has financed these industries from the money it borrowed from different banks and trusts under the inter-corporate deposit (ICD) scheme, he said.

Garg added that since many industries had defaulted in loan repayment, MPSIDC too could not return the money in time to Syndicate Bank, IDBI and several cooperative banks, and provident fund trusts.

In the Rs.8 billion which the defaulting industries owe to MPSIDC, Rs.4 billion is interest, Garg said.

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