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Showing contexts for: SONEPAT in M/S Rh Agro Private Limited vs State Bank Of India And Others on 14 May, 2020Matching Fragments
1. The present information has been filed by M/s R.H. Agro Overseas Pvt. Ltd.
('Informant') through its authorized Director under Section 19(1)(a) of the Competition Act, 2002 ('Act') against State Bank of India ('SBI'/ 'OP-1'), M/s Patanjali Ayurveda ('Patanjali'/ 'OP-2'), M/s International Trader ('International Trader'/ 'OP-3' ) alleging contravention of the provisions of Section 3 and 4 of the Act.
FACTS, IN BRIEF, AS STATED IN THE INFORMATION
2. The Informant is a private Limited Company duly registered and incorporated under the provisions of the Companies Act, 1956 and having its Registered Office at South Extension-II, New Delhi-110049. The Informant is stated to be a large scale basmati rice manufacturer situated at Bahalgarh, Sonepat. The total area of its manufacturing plant is 69121.25 sq. yard. The Informant submits that it was availing term loan and working capital from a consortium of banks namely, State Bank of India, State Bank of Patiala and Punjab National Bank. The present matter has arisen in regard to the process of auctioning of the Informant's property by State Bank of India, on account of its borrowing being classified as Non-Performing Asset (NPA).
3. The Informant is engaged in Basmati Manufacturing and was availing cash credit limit to the extent of Rs.160 Crores in favour of its unit engaged in basmati processing, mainly for export of basmati rice. The Informant has submitted that the company's rice processing unit is built on 14.28 acres of land which is located on National Highway 1 in Sonepat, Haryana at an approximate distance of 42 KM from ISBT, Delhi. This processing unit consists of buildings and civil construction and broadly comprises factory building having 76ft. height, main processing building containing 05 floors accommodated with production and other allied department, laboratory, workshop machinery hall, panel rooms, Office Area, underground water tank, RO plant room, Generator and transformer block, labour rest room and guard room etc. This unit has been mortgaged as primary security to the consortium of banks.
4. The Informant states that during 2012-13, there was a huge crisis in the export business of basmati rice as overseas buyers were rejecting the rice exported due to quality issues on account of use of pesticides by Indian farmers. In the event of such financial crisis, the Informant attempted to convince the banks to sell its unit at Sonepat, Haryana to a Saudi Arabian buyer at a reasonably handsome price, but the bank officials were adamant and not inclined to accept the offer due to which the assets mortgaged as primary security could not be sold for maximum realization of proceeds. Afterwards the plant was closed, taken into possession by the banks and the cash credit account of M/s RH Agro was declared NPA. As per SBI letter dated 03.08.2016, the outstanding dues of the Informant as on 09.11.2015 stood at Rs. 220.49 crore as per the agreed rate of interest and other expenses and charges, as applicable.
6. The Informant submits that the SBI as consortium leader had earlier caused valuation of land and building with plant and machineries on annual basis and even after declaring the account as NPA, the valuation of the entire basmati manufacturing plant at Sonepat, Haryana was carried out which came in the Range of about Rs.70 crores. However, the Valuers appointed by the bank had taken a casual approach towards valuation with the result that each and every part of the plant and machineries was not taken into account and valuation was conducted by the said bank in a crude and callous manner, with no intent and object to maximise the sale proceeds. The Informant alleges that the bank authorities, namely Sh. V.K. Ohri, General Manager and Sh. Satish Garg, Assistant General Manager, in an attempt to devalue the entire manufacturing plant came with the plea that the valuation at the instance of bank carried out in the year 2016 came to approx. Rs.63 crore. However, when the same valuation was undertaken by the Informant itself through Government approved valuers M/s Anil and Associates, Panipat and M/s Devinder Sheel Jain, Noida, UP, the valuation came to Rs. 121 Crores in the month of July, 2016.