The BoI move comes in the wake of the State Bank of India, the leader of the consortium of banks, filing a recovery suit at Mumbai debt recovery tribunal (DRT) against the Jamboo Bhandari-owned Alpine Industries, which is in the business of exporting soyabean and de-oiled cakes. Standard Chartered Bank, another member of the consortium, has also moved Mumbai high court to recover its dues and take charge of the assets of the company.

Alpine Industries' total outstanding towards banks and institutions--including ICICI and IIBI--is in the region of Rs 300 crore.

The Board for Industrial and Financial Reconstruction (BIFR) has recently turned down AIL's plea to register it as a sick company. The BIFR has stated that the company does not fall under the `sick' category.

"The bankswhich have sanctioned working capital loan to the company are of the view that AIL has tampered with its accounts to show a negative net worth to enable it to take BIFR's shelter," said a senior banker.

State Bank of India, the consortium leader, has registered a case in Mumbai DRT for non-payment of dues to the tune of Rs 160 crore. StanChart's suit in Mumbai high court is to recover dues worth Rs 1.94 crore.

SBI had sanctioned Rs 97 crore to the company as a working capital loan. In addition to the working capital loan, the SBI, along with BoI, had sanctioned foreign currency loan (FCL) to the tune of $29 million to the company in early 1995 which turned into a NPA in 1998.

An FCL worth $8.7 million was disbursed by BoI New York branch against a letter of comfort issued by the Mumbai branch in 1995. After June 1997, the account became out of order due to devolvement of five FCL instalments worth Rs 20 crore.

According to banking sources, the company diverted funds over Rs 105 crore to finance port,power and mushroom projects of the group without the concent of the consortium bankers. "Sharp decline of soya prices in the international market resulted in cancellation of many orders which effected the financial health of the company," bank sources said.

In April 1998, SBI had conducted a viability study on the company whereby it suggested infusion of fresh inflow to the tune of Rs 24.50 crore by the promoters of the company.

The company had submitted a revival package to the consortium which was rejected by the bankers. According to the bankers, at present, the entire working capital outstanding worth Rs 19.84 crore is overdue and receivables to the tune of Rs 80.79 crore are unrealisable. Alpine Industries has recently shut down its three units at Indore, Pitampur and Neemuch in Madhya Pradesh.