Nagarjuna Fin To Sell Assets To Refund FDs

Hyderabad, April 8: | Updated: Apr 9 2002, 05:30am hrs
The cash-strapped Nagarjuna Finance Ltd (NFL), a non-banking finance company (NBFC) promoted by Nagarjuna Group, is planning to sell some of its assets to refund matured fixed deposits.

“We have already obtained permission from the Reserve Bank of India (RBI) to sell the SLRs amounting to Rs 20 lakh,” Mr N Selvaraaju, whole-time director of the company told The Financial Express.

The company has about Rs 20 crore assets including the re-possessed property from defaulters, he added.

NFL is suffering from fund mismatch since 1998 when the majority of its debtors defaulted loan repayments. The company has to receive about Rs 130 crore from the market. According to Mr Selvaraaju, the debtors include: BiTV, Aditya Alkolids, Nath Pulp & Papers, Mishan Floura, Preyanshu Industries, Mahalakshmi Motors etc.

In all, the company has about 58 debtors, who have to pay between Rs 1 crore and Rs 5 crore each. “For the last 2 to 3 years we are fighting through various courts to get the money,” he added. He hoped that the company could realise at least 50 per cent of the amount in about 12 to 18 months.

Though NFL has about Rs 55-crore worth fixed deposits to repay, only Rs 12 crore has matured and outstanding. For the last one month the company has been facing acute liquidity problem and has withheld repayment on maturity. Dismissing the apprehension in the minds of the deposit holders, Mr Selvaraaju said that NFL would pay each and every rupee due to the depositors. He is hopeful that once the company sells some of its assets the liquidity position would improve.