Tepid response to PSIDC settlement scheme

CHANDIGARH: Even as the state government proposed a new one-time settlement (OTS) policy for the loanees of the Punjab State Industrial Development Corporation (PSIDC) and who were loss-making as per the audited balance sheet as on March 31, 2015, a few defaulters have shown their interest in settling their dues.

Vijay C Roy

Tribune News Service

Chandigarh, June 6

Even as the state government proposed a new one-time settlement (OTS) policy for the loanees of the Punjab State Industrial Development Corporation (PSIDC) and who were loss-making as per the audited balance sheet as on March 31, 2015, a few defaulters have shown their interest in settling their dues.

According to sources, this is the fifth OTS scheme extended to loss-making companies by the state government.

Out of the total 247 defaulters, only 26 companies have come forward for the OTS scheme. The scheme was open till May 31, 2016.

“We have received request from 26 companies having a total outstanding of Rs 48-crore interest for the OTS scheme,” said sources.

There are 140 loan defaulters and 107 equity defaulters. According to the data, PSIDC has invested Rs 403 crore in terms of loan and equity in various companies. The outstanding loan against borrowing swelled to Rs 6,705 crore and Rs 2,538 crore in terms of equity over a period of time. The amount due has grown manifold, considering the annual interest. Thus, the total accumulated loss to the PSIDC was Rs 9,300 crore, including principal and interest.

Abhishek Industries, headed by prominent industrialist Rajinder Gupta, is among the major defaulters in terms of equity investment by PSIDC. He owes Rs 124.46 crore.

Gupta’s another company Punjab Spinning & Weaving Mills Ltd owes Rs 15.6 crore to the corporation. The investment was in the form of equity. However, despite repeated attempts, Rajinder Gupta could not be contacted.

Other defaulters include RK Garg of Indian Acrylics (Rs 161.85 crore), Naresh Bhandari of Bhandari exports (Rs 71.85 crore), KK Arora of Ludhiana Fibres Ltd (Rs 2.78 crore) and Kimti Lal Jain of Arihant Cotsyn Ltd (Rs 7.02 crore).

The list also includes political bigwigs like former Rajya Sabha member Bhupinder Singh Mann’s firm Kissan Dudh Udyog Ltd (Rs 12.37 crore), Bubli Brar, daughter of former Chief Minister Harcharan Singh Brar, Dashmesh Heagens Ltd (Rs 13.23 crore), Dr BS Grewal, relative of Chief Minister Parkash Singh Badal, Scanomax India Ltd (Rs 7.06 crore).

According to sources, the public money extended then has not been paid back by the beneficiaries. The corporation raised funds through private placements of bonds and invested the same in the equity and assisted sector units.

In case of equity investment, the promoters were expected to buy back the equity on par plus interest or the market value, which ever was higher, according to financial agreements. However, most promoters did not honour their commitment.