UltraTech questions resolution process, terms process of evaluating bids for Binani Cement 'fraudulent'

Kolkata/New Delhi: Aditya Birla group firm UltraTech Cement on Thursday told the Kolkata bench of NCLT that the process followed by the Resolution Professional and the Committee of Creditors while evaluating the bids for Binani Cement was "fraudulent".

Appearing on behalf of UltraTech Cement, senior advocate Mukul Rohatgi questioned the process followed by the Committee of Creditors (CoC) of Binani Cement led by Bank of Baroda in selecting rival Dalmia Bharat Group as the highest bidder. He submitted that UltraTech apprehends that it was not declared as the H1 bidder in view of the penalty imposed by the Competition Commission of India.

On February 27, 2018, CoC informed that UltraTech is the H2 bidder.

UltraTech Cement. Representational image. Reuters

UltraTech Cement. Representational image. Reuters

According to him, UltraTech was not given an opportunity to explain its case that the penalty imposed by CCI was subsequently removed and that it should have therefore been regarded as H1.

UltraTech on Thursday concluded its argument before the NCLT and hearing would continue today.

The Kolkata bench of the National Company Law Tribunal (NCLT) is hearing the matter regarding sale of Binani Cement by the CoC to recover dues of Rs 7,000 crore.

The CoC has approved Rs 6,500 crore bid by Rajputana Properties, a subsidiary of rival Dalmia Bharat group. However, later Binani Industries, which holds 98.4 per cent share in Binani Cement approached UltraTech and following which the Aditya Birla group entered into an agreement to buy its stake at Rs 7,200 crore, which was Rs 700 crore more than Dalmia Bharat's offer.

Earlier, both NCLT and NCLAT had suggested the parties to go for out-of-court settlement in the matter. However, the CoC did not agreed to the UltraTech's offer and the matter came up hearing again before NCLT, which is a final authority to approve the Resolution Plan.

Updated Date: Apr 20, 2018 08:02 AM

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