The consortium of banks comprises of State Bank of India [SBI], Indus Ind Bank, and Oman International Bank S.A.O.G may eye the Gujarat property of Eupharma Laboratories Ltd, in order to recover maximum outstandings from the sick company said a senior SBI official. The consortium had seized the Mumbai property of the company, which is located at Vile Parle, on June 4 as per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Eupharma owes more than Rs. 13.41 crore to SBI, Rs. 14.05 crore to Indus Ind and Rs. 13.41 crore to Oman International Bank. Thus the total outstandings comes to about Rs. 42 crore. The banks however are not happy with the possession as the valuation of the property seized is far less than the actual outstandings owed by Eupharma to the banks. "The valuation of the property seized is far less compared to the actual outstandings owed. The owner is capable of paying more. We are looking at a possibility to seize his Gujarat property," said the SBI official.
According to sources, the consortium arrived at a valuation of Rs. 19 crore for the Vile Parle property. However, according to Ramanlal Shah, Chairman, Eupharma, the actual value of the property would be far less. "As per the current property rates, the value of the Vile Parle unit would fetch around Rs. 12 crore," he said. Sill the picture is incomplete as Eupharma, further owes about Rs. 7 crore as its employees’ salaries, government taxes and other funds and to other creditors, whom now the banks will have to take care of, said Shah.
"We had already communicated to the banks for a one-time settlement, by which we will pay the consortium Rs. 12.5 crore, " said Shah. However, the bank officials denied about any such communication. "First of all the company has not come with any such proposal in the last four years. Besides, amount as low as Rs. 12.5 crore is unacceptable. We are very much agreeable for a one-time settlement, but let him come in open with an amount, which is acceptable to the consortium," said the SBI official.