8 Firms Pay Dues To IAF Societies

New Delhi, July 30: | Updated: Jul 31 2003, 05:30am hrs
As many as eight defaulters of two Indian Air Force organisations including companies such as AC Muthiahs SPIC, GP Goenkas Duncans Industries Ltd and HS Rankas Modern Terry Towels, Modern Syntex, Modern Threads and Modern Denim have come around to clear their dues.

This follows a series of exposes by FE on these companies over their long standing defaults in repayment of loans to Air Force Group Insurance Society (AFGIS) and Indian Air Force Benevolent Association (IAFBA). Other companies which have either paid up or started making payments in instalments after signing memorandum of understanding (MoU) include Pavan Sachdeva promoted MS Shoes East Ltd and CR Bhansalis CRB Corporation while Rita Singh-JK Singh promoted Mideast India is negotiating a full and final settlement.

AFGIS and IAFBA had filed criminal cases under Sections 420 and 409 of Indian Penal Code (IPC) against these companies and their directors in Delhi courts.

SPIC, whose chairman AC Muthiah also happens to be the president of Federation of Indian Chambers of Commerce and Industry (Ficci), has already paid the first instalment of Rs 1.35 crore and is due to pay the balance Rs 1.15 crore alongwith legal expenses by August 1 this year.

Duncans Industries chairman GP Goenka, a former Ficci president, signed the agreement on behalf of the company with IAFBA for repayment of the Rs 4 crore principle amount plus interest and legal expenses in monthly instalments by October this year. IAFBA has agreed to suspend legal proceedings against the company and its directors provided all the cheques are honoured.

Sources said all the four Modern group companies have fully paid up the dues as per the settlement. Legal proceedings against MS Shoes East and its promoter Pavan Sachdeva have been closed following repayment of dues as per a settlement agreement.

AFGIS is currently in the process of negotiating a final settlement with Mideast India after its promoters Rita Singh and JK Singh approached the organisation expressing their willingness to clear the dues. CRB Corporation has already signed an agreement with IAFBA for repayment of its dues within 12 months as per the directions of the Delhi High Court.