New Delhi: The largest lender in the country, State Bank of India, has filed an insolvency petition against Bajaj Hindusthan Sugar with the National Company Law Tribunal (NCLT), the business announced in an exchange statement on August 16.
The petition was filed under the Insolvency and Bankruptcy Code at the Allahabad bench of the National Company Law Tribunal, according to the filing. The business withheld additional information.
However, according to media reports, Bajaj Hindusthan Sugar owes institutions like SBI, Punjab National Bank, Indian Bank, and Central Bank of India close to Rs 4,800 crore.
Creditors often file insolvency petitions in company court for nonpayment of dues. Insolvency proceedings against the corporation commence as soon as the court accepts the petition.
The company Bajaj Hindusthan produces ethanol and sugar. Its main office is in Mumbai and it is a part of the Bajaj Group.
The company operates six distilleries with the ability to manufacture 800-kilo liters of industrial alcohol per day, as well as 14 sugar facilities, all of which are located in Uttar Pradesh.
Additionally, the business produces nearly 430 megawatts (MW) of power from the bagasse made at its sugar mills and sends nearly 100 MW of it to the state grid of Uttar Pradesh.
It also has five 90 MW coal-fired power plants nearby its sugar factories that produce 450 MW more electricity for the national grid.
The company reported a net loss of Rs 44.91 crore for the April-June quarter as opposed to Rs 49.72 crore for the same quarter the year before. Compared to the same quarter last year, sales increased 13.11 percent to Rs 1,529.92 crore.
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