Binani Cement resolution professional alleges fraud by company promoters
Binani Cement's resolution professional alleged that the promoters diverted funds that affected the company's working capital provisions.
March 21, 2018 / 07:48 AM IST
The resolution professional overseeing the auction of Binani Cement has alleged fraudulent transactions by promoters of the company.
In an application filed in the National Company Law Tribunal, Vijaykumar Iyer said a forensic consultant was appointed in November to review some of the transaction by Binani Cement.
He has alleged that the promoters diverted funds that affected the company's working capital provisions. The report was presented on March 12.
The latest development adds one more layer to complexity in the auction of Binani Cement. Earlier this week, UltraTech Cement had announced that it has offered a comfort letter to the promoters of Binani Cement, to help them clear the debts of the stressed company.
In return, the Aditya Birla Group company will acquire about 98 percent stake in Binani Cement.
But the deal is subject to cancellation of the auction proceedings at the NCLT.