Consortium Led by IDBI Bank Invokes SARFAESI Law to Sell GTL Secured Assets

Lenders have cumulative exposure of ₹7,250cr with GTL

IDBI Bank, on behalf of the consortium of lenders, has tendered for the sale of secured assets of GTL Ltd under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement Act 2002 securities (SARFAESI law) to recover dues totaling approximately ₹7,250 crore by the end of December 2021.

The reserve price of GTL’s eight assets/properties spread across the Mumbai metropolitan area, Raigad and Pune districts stands at ₹242.50 crore, according to the notice issued by the bank.

GTL provides various services related to the operation and maintenance of the network to telecommunications operators and tower companies.

The range of services offered by GTL also includes energy management solutions for telecommunications operators to optimize their energy consumption in telecommunications operations and maintenance services for these networks.

“Due to breaches committed by GTL with regard to the financing documents signed by GTL with the lenders and in accordance with the rights of the lenders thereunder and the applicable laws…the lenders have decided to transfer the Secured Assets (Immovable Property) of GTL,” according to the process document issued by IDBI Bank.

The sale of GTL’s secured assets through the electronic auction is on an “as is where is”, “as is and whatever” and “without recourse” basis, the Bank said. The starting price in the electronic auction will be the higher quotation or reserve price, whichever is higher.

According to the process document, bidders may perform their full due diligence in respect of GTL’s secured assets, including any royalties relating to such assets and for the necessary approvals required from the Maharashtra Industrial Development Corporation Ltd. (MIDC) and/or any other required entity.

Published on

June 19, 2022