UCO Bank on Sunday declared Yashovardhan Birla, the Director of Birla Surya Ltd, as a willful defaulter after the company failed to repay loans of Rs 67.65 crore.
Yashovardhan Birla is also the Chairman of the Yash Birla Group.
As per the norms, when a promoter of a company is assigned to be a wilful defaulter by a lender, the promoter's access to funding dries up for the existing business and also for any of the companies he or she is a director.
"The Birla Surya Limited was sanctioned with credit limit of Rs 100 crore only with fund-based facilities for the purpose of manufacturing multi-crystalline solar photovoltaic cells from our flagship corporate branch, Mafatlal Centre, Nariman Point, Mumbai. The present balance outstanding is Rs 67.65 crore plus unapplied interest from the date on NPA," the notice said.
The bank further said that the borrower didn't repay the dues despite several notices served by the Kolkata-based lender.
Interestingly, UCO Bank was founded in 1943 under the aegis of industrialist GD Birla, the brother of Yashovardhan Birla's great grandfather Rameshwar Das Birla.
First Published: IST