Rajesh Exports repays ₹510 crore dues to Canara Bank after DRT order
Canara Bank recovered all dues totaling ₹510 crore from Rajesh Exports. This recovery followed an order by a debt recovery tribunal. The bank initiated this action after the company blocked other recovery attempts. Rajesh Exports faced allegations of financial misrepresentation from SEBI. The bank was the largest creditor for the gold and jewellery exporter.
Mumbai: Canara Bank has successfully recovered a total of ₹510 crore from debt-ridden Rajesh Exports following an order from a debt recovery tribunal (DRT). The tribunal had instructed the company to deposit the funds to prevent the sale of its properties. The bank had initiated the DRT proceedings after the company failed to recover the dues through the bankruptcy code.
The account had become non-performing in 2020 and was admitted to the DRT in 2021. Additionally, the bank had filed a case under the insolvency code in the National Company Law Tribunal (NCLT) and had initiated a SARFAESI action for recovery. However, the company had obtained a stay on all recovery actions from the Karnataka High Court, except for the DRT case, which was decided in the bank's favor a few days ago after six years of legal battles.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
