In response to the liquidator’s plea, the special court last week directed Union Bank of India and Bank of Maharashtra to comply withits earlier order “in strict sense” within three months and transferred the money in the liquidator’s account.
The court said it was clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and have not followed court orders. “ED has also prayed for allowing this application. . . In fact that order (from 2021) is and was binding on all the respondents and hence there was no need to file this application for issuing directions to respondent to comply the same,” the court said. It didnot issue directions to Kotak Mahindra Bank.
The liquidator said it had informed the Union Bank of India to transfer the amount lying in the company’s account. It was alleged that the bank did not respond to the emails. During arguments it further stated the bank transferred only Rs 17 crore to the account of liquidator but did not transfer the balance. It was alleged that the balance amount was not the exclusive security of the bank and ought to have been transferred to the liquidator.
The court said with regard to Bank of Maharashtra it prima facie appeared in 2021, ED had informed it to unfreeze FIDPL’s account and transfer the amount to the liquidator. “However, the bank informed it has adjusted the amount, ie Rs 16. 32 crore, towards outstanding loan amount or cash margin of the company and closed these accounts in 2018 as there is no balance. This is nothing but total disobedience of the order of ED,” the order said.