Race for Binani Cement heats up

The takeover war for Binani Cement between Dalmia Bharat group and UltraTech declines to ease as both the bidders remain unperturbed despite the revelation of alleged fraud on the stressed asset, and both remain fully committed for acquisition.

The Resolution Professional (RP) Vijaykumar V Iyer has moved the National Company Law Tribunal (NCLT), alleging suspect and fraudulent transactions in Binani carried out by an independent forensic auditor.

Dalmia Bharat Group CEO Mahendra Singhi said the company too had found some suspicious transactions during their internal evaluation but declined to quantify the amount. At the time when UltraTech was raising questions about transparency of the RP, Singhi had a different view and supported the RP, saying there was no suppression of fact by the RP and a transparent process was followed. "A full lawful transparent process had been followed by the Resolution Professional and CoC and accordingly all the bidders participated and now Dalmia has submitted the 10 per cent performance bank guarantee of the winning bid amount with the CoC," he said.

"We are fully compliant with IBC. We have submitted our bid. We are allowed to revise our bids. IBC says maximise value and if the banker is getting higher amount of money before they have taken a decision, then they should take a decision with their eyes open," UltraTech Cement CFO Atul Daga said.