Latest news with #SARFAESIAct
&w=3840&q=100)
Business Standard
29-05-2025
- Business
- Business Standard
McLeod Russel in discussion with NARCL for composite debt resolution
McLeod Russel India has submitted an initial proposal to the National Asset Reconstruction Company Limited (NARCL) for resolution of its debt. In March this year, most lenders—except IndusInd Bank—assigned their loan accounts in India's largest bulk tea producer to NARCL. In its results disclosure, McLeod stated that borrowings from banks aggregating to Rs 1,033.03 crore, representing the principal amount, had been assigned to NARCL. This was done under an Assignment Agreement dated 12 March 2025, executed under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). According to McLeod sources, the company is now seeking a composite resolution of its total debt and has initiated engagement with NARCL. In its notes to results, McLeod mentioned that management is confident that a resolution will be reached regarding borrowings from asset reconstruction companies (ARCs) and banks, aggregating to Rs 1,461.07 crore. The company expects to arrive at a sustainable repayment amount, including associated costs, along with an agreed repayment timeline in due course. In addition to NARCL, McLeod will also have to engage with IndusInd Bank and JC Flowers ARC. While realisation from tea sales had improved to some extent, the company suffered crop losses due to adverse weather conditions, impacting overall operations and performance. The company further noted that inter-corporate deposits (ICDs) extended to various promoter group entities and others in earlier years, along with accrued interest, remain outstanding as of the reporting date. In the January–March quarter (Q4FY25), McLeod reported a net loss of Rs 174.41 crore, down from Rs 218.42 crore in the corresponding quarter of the previous year. Revenue from operations stood at Rs 165.47 crore in Q4FY25, compared to Rs 194.95 crore a year earlier. For the full year FY25, revenue was Rs 1,185.41 crore, compared to Rs 1,135.89 crore in FY24. The net loss for FY25 stood at Rs 197.87 crore, down from Rs 311.59 crore in FY24.
Mint
22-05-2025
- Business
- Mint
4 serious consequences of missing your home loan EMI payments
In the nation's ever evolving economic landscape, consistent and on time repayment of home loan Equated Monthly Instalment (EMI) holds immense value. It is imperative to make sure that the repayment of not only home loans but any other kind of loan is made on time and in seamless fashion to avoid any late payment fees or charges. Due to the same, missing out on even a single payment or EMI can result in serious financial complications and legal ramifications. Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd says, 'Missing EMIs can damage your credit score, increase debt burden with late fees, and lead to loan foreclosure or legal action. As, the interest continues to accumulate on defaulted EMIs, further increasing your outstanding balance and putting greater pressure on your finances. To avoid this, set up automatic payments, prioritise timely repayments, and communicate with your lender if facing financial difficulties." Keeping the above points in mind, here are four critical reasons why staying current on your home loan EMIs is essential: Your credit score is simply a reflection of your financial prosperity i.e., how reliable you are in making repayments on time. That is why even a single missed EMI can result in causing a substantial drop in your credit score influencing your future savings and borrowing in a negative way. A delay of just one day can result in reducing your credit score by up to 25 to 30 points. A month-long delay may result in an even more serious dent, declining your score by 75 to 100 points. The negative remarks of default or missed payment can stick on your report for up to 7 years. Missing EMIs can result in financial penalties, legal difficulties etc. These additional costs can strain your financial health further and result in emotional and psychological problems. Late payment fees typically range from 1% to 2% of the EMI amount. Penal interest rates can be as high as 2% to 4% per month on the overdue amount. These charges accumulate quickly, increasing the overall repayment burden. Regular non payment can result in several legal difficulties including loss of your property along with other serious economic consequences: If you miss three consecutive EMIs then your loan account might be classified as a Non-Performing Asset (NPA). This will make future personal loans and premium credit cards nearly impossible to secure. Banks and financial institutions can initiate recovery proceedings against defaulters. These proceedings are initiated under the SARFAESI Act and have the possibility of property auctioning to meet loan shortfalls. Further legal actions, seizure of assets etc., can damage your financial standing and creditworthiness to an even larger extent. The consequences of missed EMIs extend beyond immediate financial penalties impacting your financial future and economic prosperity. A 'settled' status on your loan indicates partial repayment. It can lower your credit score by 50 to 100 points. Such negative information can stick on your credit report for about 7 years. Tarnished credit history can make it tough for you to secure new loans or credit cards. Hence, missing your home loan EMIs can significantly damage your credit profile. It can negatively influence your credit score, invite penalties and even result in serious legal consequences such as property and asset auctions along with seizure of funds for meeting repayment short falls. These developments generally take place on court orders still, it is always prudent for borrowers to avoid going in that direction as it creates financial instability, legal difficulties and complicates an individual's financial prosperity. Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Please consult a professional before making loan-related decisions.
Time of India
19-05-2025
- Business
- Time of India
CCI rejects allegations of anti-competitive practices against Canara Bank
The CCI dismissed a complaint against Canara Bank, stating no evidence of anti-competitive conduct or abuse of dominance. A Tamil Nadu-based company alleged arbitrary interest rates, undervalued assets, and obstruction of loan transfers. However, CCI found Canara Bank's market share insufficient to establish dominance, and no proof of collusion with valuers. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Fair trade regulator CCI on Monday dismissed a complaint against public sector lender Canara Bank alleging abuse of dominance and anti-competitive conduct in relation to multiple loan transactions "The commission is of the view that no prima facie case of contravention of sections 3 and 4" of the Competition Act is made out in the present matter, the Competition Commission of India (CCI) said in the 3 and 4 pertain to anti-competitive agreements and abuse of dominant position, observed that Tamil Nadu-based KSD Zonne Energie LLP (complainant) had accused Canara Bank of imposing arbitrary interest rates and retrospective complainant alleged that the public sector bank colluded with property valuers to deliberately undervalue assets for auction under the SARFAESI Act Further, the complainant had attempted to transfer the loan to other banks offering lower rates, however Canara Bank obstructed the process by withholding collateral documents required by competing complainant said these tactics restricted its ability to secure fair market rates and suppressed competition by forcing reliance on the bank's unfavourable also noted that the allegation made by the complainant was the arbitrary increase in the rate of interest made by Canara Bank in different loans taken from the bank, by taking advantage of its dominant position in the relevant the regulator observed that Canara Bank, which holds a 5.73 per cent market share in the Indian banking sector, cannot be considered to be in a position of dominance in the relevant market for banking and loan services, which includes several large in the absence of dominance, the issue of abuse of dominance does not arise, CCI said in its Commission also found no evidence of collusion between valuers and the bank.
Mint
14-05-2025
- Business
- Mint
Authum Investment share price jumps over 10% to hit its record high after revising ISARC acquisition terms
Shares of Authum Investment & Infrastructure surged over 10 percent on Wednesday, May 14, touching a fresh all-time high of ₹ 2,135.95, after the company announced revised terms of its proposed investment in India SME Asset Reconstruction Company Limited (ISARC). The company executed a supplemental agreement on May 13, 2025, which updates the original terms outlined in the agreement signed on October 14, 2024. As per the new agreement, Authum will subscribe to 13 crore equity shares of ISARC at ₹ 14.86 per share, based on an updated valuation report, bringing the total subscription amount to ₹ 193.18 crore. This move will give the company a 56.52 percent stake in ISARC on a fully diluted basis. In addition to the fresh equity infusion, the company will purchase 2.09 crore equity shares from Punjab National Bank, an existing shareholder of ISARC, at ₹ 16.29 per share. This translates into a total share purchase consideration of ₹ 119.32 crore, adding another 31.85 percent to its voting rights in the company. With both the fresh subscription and share purchase combined, Authum will invest a total of ₹ 312.5 crore, acquiring 20.32 crore equity shares and holding 88.37 percent of ISARC's voting rights. The long stop date to complete the transaction has also been extended to July 31, 2025. Upon completion, ISARC will officially become a subsidiary of Authum. ISARC is a registered asset reconstruction company under the SARFAESI Act, 2002, and primarily focuses on securitisation and recovery of financial assets, with a special emphasis on MSMEs. As of March 31, 2024, ISARC reported a net worth of ₹ 129.68 crore and a turnover of ₹ 2.47 crore. The acquisition aligns with Authum's long-term strategy to expand its presence in the financial services sector, specifically by creating a dedicated platform for turning around distressed assets. According to the company, this platform will be backed by capital strength and operational expertise, enabling it to build a diversified credit business under the asset reconstruction vertical. All regulatory approvals, including those from the Reserve Bank of India (RBI) for change in sponsor and board appointments, have already been secured through RBI's letters dated March 25 and March 26, 2025. The market has responded enthusiastically to these developments. On May 14, shares of Authum jumped 10.3 percent to hit ₹ 2,135.95, their highest-ever level. The stock has seen a spectacular rally, rising 181 percent from its 52-week low of ₹ 760, touched in May 2024. Over the past 12 months, the stock has delivered multibagger returns, soaring 153 percent. In May alone, it has added 23 percent, rebounding from a marginal 0.5 percent dip in April. Earlier, it gained 23 percent in March, 16.5 percent in February, and 0.9 percent in January, highlighting sustained investor interest. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
New Indian Express
11-05-2025
- Business
- New Indian Express
Telangana High Court suspends IOB's fraud notice to MBS Jewellers
HYDERABAD: The Telangana High Court granted an interim suspension of the show cause notice issued by Indian Overseas Bank (IOB) to MBS Jewellers Pvt Ltd asking it why it should not declare the company's loan account as fraudulent. MBS Jewellers challenged the notice in court, claiming that it was issued nearly eight years after the initial loan default and without giving them a proper opportunity to be heard. MBS Jewellers had availed a loan from IOB in 2008, which included cash credit limits, letters of guarantee and demand loans in gold, with flexibility between the credit and guarantee limits. The account was declared a Non-Performing Asset (NPA) in 2013 following a default, leading to proceedings under the SARFAESI Act and the RDDBFI Act. The matter is currently pending before the Debt Recovery Tribunal (DRT). Subsequently, IOB assigned the debt to Raytheon Asset Reconstruction Company for a valuable consideration, effectively transferring the entire debt of MBS Jewellers to the Raytheon. Despite this transfer, IOB issued a show-cause notice to the company nearly eight years later, alleging fraudulent activities in the use of bank guarantees and cash credit facilities. The bank cited that guarantees worth `70 crore issued during 2011-12 had been invoked by MMTC, and raised concerns about the mortgaged property at Hafeezpet, Hyderabad.
