The board in a recent order said the company fulfilled all criteria for sickness laid down in the Sick Industrial Companies (special provisions) Act. The bench declared ATV Projects sick after its net worth of Rs 167.17 crore upto June 1998 was completely eroded with the accumulated losses of Rs 178.46 crore. It has been asked to give its comprehensive rehabilitation proposal to IDBI along with means of finance for its revival.

BIFR has also directed the company not to dispose off its fixed assets without the prior approval of the board. However, the board has said that the company can continue to rotate its current assets in the normal course of business by ensuring that all sale proceeds and other transactions are routed through its financing bankersonly.