Bombay HC's liquidator may sell around 120 acres land of Mafatlal Engineering
The contiguous land parcel in Thane’s Kalwa locality, according to property market experts, is estimated to fetch over Rs 1,000 crore.
The Official Liquidator of the Bombay High Court is looking to sell around 120 acre land parcel of Mafatlal Engineering Industries to repay dues of its lenders and more than 3,000 workers.
The contiguous land parcel in Thane’s Kalwa locality, according to property market experts, is estimated to fetch over Rs 1,000 crore.
The company that had shut down in May 1989 counts ICICI Bank and Asset Reconstruction Company (India) Ltd. (ARCIL) among its key lenders.
The factory land was spread over total 197 acres and some part of it has been encroached upon. Of the total land, the official liquidator has already sold nearly 2.7 acre land parcel to the Thane Municipal Corporation for around Rs 40 crore, while Railway Vikas Corporation has acquired little over 1 acre around two months ago.
The Bombay High Court has through its recent order passed by the Justice SJ Kathawalla, has declared a dividend of Rs 16.40 crore to be distributed to the workers and secured creditors of the Mafatlal Engineering Industries.
The Bombay High Court, in its order, has clarified that distribution of the dividend would be on an ad-hoc basis. It has also clarified that the workers’ dividend and the dividend to the secured creditors need to be paid to them within 6 months from the date of notices issued to them by the Official Liquidator.
When contacted, official liquidator VP Katkar said that the disbursement of dividend to workers has started and they are trying to conclude it as soon as possible. Apart from this, further dividend will be announced soon, with the approval of the court, out of the amount deposited by the Railway Vikas Corporation while acquiring part of the land.
The land parcel has been put on the block four times before this including the latest one made late last year. In the last exercise, the official liquidator had set reserve price for the land parcel at Rs 1,132 crore. However, it received lukewarm response given the tepid market scenario.
The Official Liquidator of the Bombay High Court is looking to sell around 120 acre land parcel of Mafatlal Engineering Industries to repay dues of its lenders and more than 3,000 workers.
The contiguous land parcel in Thane’s Kalwa locality, according to property market experts, is estimated to fetch over Rs 1,000 crore.
The company that had shut down in May 1989 counts ICICI Bank and Asset Reconstruction Company (India) Ltd. (ARCIL) among its key lenders.
The factory land was spread over total 197 acres and some part of it has been encroached upon. Of the total land, the official liquidator has already sold nearly 2.7 acre land parcel to the Thane Municipal Corporation for around Rs 40 crore, while Railway Vikas Corporation has acquired little over 1 acre around two months ago.
The Bombay High Court has through its recent order passed by the Justice SJ Kathawalla, has declared a dividend of Rs 16.40 crore to be distributed to the workers and secured creditors of the Mafatlal Engineering Industries.
The Bombay High Court, in its order, has clarified that distribution of the dividend would be on an ad-hoc basis. It has also clarified that the workers’ dividend and the dividend to the secured creditors need to be paid to them within 6 months from the date of notices issued to them by the Official Liquidator.
When contacted, official liquidator VP Katkar said that the disbursement of dividend to workers has started and they are trying to conclude it as soon as possible. Apart from this, further dividend will be announced soon, with the approval of the court, out of the amount deposited by the Railway Vikas Corporation while acquiring part of the land.
The land parcel has been put on the block four times before this including the latest one made late last year. In the last exercise, the official liquidator had set reserve price for the land parcel at Rs 1,132 crore. However, it received lukewarm response given the tepid market scenario.
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