Lenders have initiated a process to declare the promoters of Lancobusiness group, controlled by a former Congress Parliamentarian, and ABG Shipyard, owned by a kin of the Ruias of Essar Steel, as ‘wilful defaulters’ after failing to recover dues despite their efforts, said two people familiar with the matter.
A forensic audit of the accounts of both the companies, that owe Rs 63,500 crore, would be conducted; after which if there is evidence of siphoning off of funds or fraudulent activities in the companies, they could face criminal prosecution, said those people who did not want to be identified.
Lanco is an infrastructure group with interests in roads and power. It was promoted by L Madhusudhan Rao and L Rajagopal, a former member of the Parliament from Vijayawada who created a stir by using pepper spray in Parliament during the debate on bifurcation of Andhra Pradesh. The family owns 58 per cent of the company. Read More…
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