Canara Bank has successfully recovered ₹510 crore in dues from debt-laden Rajesh Exports following an order by a debt recovery tribunal (DRT). According to reports from The Economic Times, the tribunal asked the company to deposit the money to prevent its properties being sold. The bank had initiated this DRT action after the company blocked attempts for recovery through the bankruptcy code.
As reported by The Economic Times, this account had turned non-performing in 2020 and was admitted to the DRT in 2021. The bank had filed a case in the insolvency code in the NCLT and had parallelly started SARFAESI action for recovery. However, the company had obtained a stay on all recovery actions from the Karnataka High Court except the DRT case, which was decided in the bank's favour after almost six years.
According to The Economic Times, Rajesh Exports is under scanner after the stock market regulator Securities and Exchange Board of India (SEBI) alleged large-scale financial misrepresentation in June. The allegations include non-cooperation with investigators and possible inflation of the company's reported revenues. The Bengaluru-based gold and jewellery exporter is facing scrutiny over these financial irregularities.
As reported by The Economic Times, Canara Bank was the largest creditor for the gold and jewellery exporter. The recovery represents a significant milestone for the public sector bank in its efforts to recover dues from the debt-laden company. The successful DRT order demonstrates the tribunal's authority in debt recovery proceedings despite the company's legal challenges.
