gvk group: Six Indian banks sue GVK for Rs 12,114 crore: Report

Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, in accordance with the Instances of India. The six banks embrace , , , , , and Axis Bank.

In accordance with the report, GVK defaulted on a $1-billion mortgage and a $35-million letter of credit score facility given by banks in 2011, and a $160-million mortgage lent in 2014.

GVK Coal Builders (Singapore) and 9 different GVK Group corporations are being sued within the case which opens Monday.

As per the banks, GVK did not make repayments as they fell due and did not get hold of a mining lease within the Alpha undertaking in Queensland, Australia by December 31, 2012, which was a undertaking milestone that needed to be glad. The banks reportedly requested GVK in November 2020 to cancel the settlement and requested compensation. However neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.

Then again, GVK argued that “the loans was to offer half funding for the acquisition of the Hancock corporations in Australia to develop their belongings — together with the Alpha undertaking — into working coal mines”.

“The deterioration available in the market for coal, the shortage of third-party funding, authorized challenges to the mining initiatives within the courts of Queensland, meant that little or no progress was made to develop the mining belongings,” GVK states. GVK states it couldn’t get hold of the mining lease owing to litigation by environmental teams however denies this was a “default”.