However, when contacted through its media consultant, Metal Box promoter Vinod Krishna refused to comment on any of the sell-off allegation levelled by the bankers.

Documents with The Financial Express

show that the company sold off certain assets -- two flats in Mumbai, in addition to its proposition to sell the premises housing the now-closed registered office in Calcutta.

Earlier, the management was unable to provide details to its statutory auditors Haribhakti & Co regarding the sale of assets worth Rs 1.74 crore during the financial year to September 30, 1997. Notes in the schedule to the accounts state that miscellaneous income for that year includeprofit of Rs 173.80 lakh on sale of certain surplus fixed assets.

Krishna had tenanted a company property at 8, Dalamal Court at Worli Seaface in Mumbai to Vidhan Fibreglass Products Pvt Ltd in 1994 with an option to sell it after a two-year period. The flat at Dalamal Court has freehold floor area of 86.11 square yards.

According to the agreement with Vidhan Fibreglass, Krishna officially received Rs 5 lakh security fee of Rs 5 lakh and Rs 23 lakh advance, apart from the monthly rental of Rs 3387. In the event of the flat being sold to Vidhan Fibreglass, Krishna was to receive another Rs 15 lakh without having to return the advance or the security deposit.

A similar agreement was drawn up between the Metal Box management and the same tenant, Vidhan Fibreglass for the company's flat at Altamount Road in Mumbai, having an area of 277.78 sq. yards. Vidhan Fibreglass was to pay a monthly rent of Rs 85,000, apart from paying an advance of Rs 2 crore and security fee of Rs 1 crore.

According to theagreement, after the expiry of a two-year term, Vidhan Fibreglass could purchase the flat by paying another Rs 85 lakh to Krishna.

Industrial Development Bank of India, one of the financial institutions, had requested the company's operating agency ICICI to initiate ``necessary action'' against managing director V Krishna for flouting the order of the Board for Industrial & Financial Reconstruction by selling the company's property.

Ross Murarka Finance Ltd had earlier moved the Delhi high court against the BIFR from disposal of ``any assets'' under the scheme of rehabilitation of Metal Box.

Ross Murarka, which later withdrew its petition before the Delhi high court, is understood to had reactivated a civil suit filed before the Alipore Court in Calcutta inter-alia for specific performance of alleged agreements of sale, executed by the erstwhile management.

According to Metal Box annual report for the 18-month year to September 30, 1997, the management filed a stay application.