New Delhi, Apr 10 (PTI) Dalmia Bharat Group firm Rajputana Properties today sought RBI’s intervention to ensure lenders to Binani Cements follow IBC process and honour its Rs 6,350 crore winning bid to acquire the debt-ridden firm.

The company has alleged that despite binding contracts, some members of the Committee of Creditors (CoC) were trying to go for settlement with promoters of Binani Industries in violation of Insolvency and Bankruptcy Code (IBC) and general principles of the rules of law.

“As the regulator for banking sector, we request you to examine the matter appropriately and if deemed fit direct the banks to not deviate from the IBC process and represent in all proceedings that they are committed to the CIRP and contract with RPPL in the interest of justice and larger public purpose,” said Rajputana Properties in its letter to RBI.

Any settlement by the CoC would be “blatant violation of the provisions of the Code, in terms of which CoC has no jurisdiction, power, authority or right under the Code, 2016 to entertain and consider such a settlement proposal from BIL, it added.

It further contended that all banks, including the members of the CoC have agreed that there shall not be any negotiation exception with highest bidder, which is Rajputana Properties.

The Dalmia Bharat Group firm has also written letters to the lenders contending that National Company Law Tribunal (NCLT) has given liberty to them to settle the matter, which does not mean them to go for an alternate offer of UltraTech, which is outside the IBC guidelines.

These banks include IDBI, SBI, Exim Bank, Bank of Baroda, Bank of India, Oriental Bank of Commerce, Syndicate Bank and Canara Bank.

The Rs 6,350-crore bid of Rajputana Properties, a wholly-owned arm of Dalmia Bharat group, for acquisition of Binani Cements Ltd (BCL) was approved by the CoC.

However, things took a twist with Aditya Birla group, firm UltraTech which had lost out coming back with a Rs 7,266 crore offer to acquire Binani Industries Ltd’s (BIL) 98.43 per cent stake in BCL.

In its letter to RBI, Rajputana Properties said while talking to BIL, some banks are taking the shield of an earlier order of NCLT dated March 27, 18 and NCLAT dated April 3, 2018 wherein the court had suggested that banks are “at liberty to consider an out of court settlement”.

The company contended that the tribunals “did not direct the banks to accept an alternate offer or to do any out of court settlement to allow them to violate laws, act contrary to CVC, IBA guidelines and extend the interpretation of ‘liberty’ to act outside established norms of ethical conduct.” “If the participation of buyers in Corporate Insolvency resolution process (CIRP) gets deterred due to the conduct of some of the banks it could impact proper price discovery of future stressed assets and may not help in resolving the mounting NPA’s of Indian banks which RBI is committed to resolving,” the letter said.

The Dalmia Bharat group has also approached the Central Vigilance Commission expressing concerns over the matter.

According to reports Binani Industries, which holds 98.43 per cent stake in Binani Cements Ltd, has approached the Supreme Court to redeem the pledge of its assets in the debt ridden company to end the bankruptcy proceedings.

This is published unedited from the PTI feed.