Singapore-based Wilmar International is set to take the Reserve Bank of India (RBI) to court over its insistence that Shree Renuka Sugars, in which it holds a 58 percent stake, be classified as a non-performing asset (NPA) by banks,
Business Standard reported.
Wilmar International stands to lose as it has about Rs 4,000 crore exposure to Shree Renuka in the form of equity and loans, the report said.
"This is despite Shree Renuka Sugars'consortium of lenders, led by IDBI Bank, having been apprised the RBI that there had been a material change in the company's management following an open offer by WSH. The bank's books will also be affected by the end of the March due to provisioning," Business Standard reported citing sources familiar with the development.
As per the RBI's February 12 circular, credit limits of a firm needs to be upgraded to 'standard' following a change in their ownership, the report said. Wilmar, before the open offer, held 38.57 percent stake in the sugar refining company which went up to 58 percent, the report added.
