Residential properties owned by PC Jewellers Ltd promoters are taken over by SBI

30 Nov 2023 , 12:22 PM

Two residential properties owned by PC Jewellers Ltd. in New Delhi have been taken over by the State Bank of India, the largest bank in the country, following the company’s and its guarantors’ inability to repay Rs 1,168.90 crore.

The lender issued a warning informing the public not to deal with the property and that doing so would subject any transactions to bank charges totaling Rs 1,267 crore in addition to any amounts owed to other secured creditors. The National Company Law Tribunal, or NCLT, has already received a case against PC Jewellers from the State Bank of India.

Banks recalled their loans when PCJ disclosed in an October 2018 stock exchange statement that it had defaulted on Rs 3,466 crore in this regard. SBI then filed a complaint with the Debt Recovery Appellate Tribunal.

The company reported in its financial statements for the second quarter of current fiscal year that seven additional banks, including SBI, Indian Bank, IDFC First Bank, and Union Bank, had filed a DRT Delhi against the company in an effort to recover their debts.

‘Compared to the Rs 836 crore generated in the same time of the previous FY, the company’s domestic turnover dropped to Rs 33 crore in Q2 FY 24. 

This is primarily due to operational disruptions and the ensuing liquidity crunch brought on by the company’s ongoing legal battles with its lenders,’ the company stated in its financial results presentation. For the same time frame, the company declared a loss of Rs 152 crore.

The business has declared that it is in constant contact with its lenders and that it is still investigating the prospect of reaching an out-of-court deal with them. The company reported in its financial results that it closed three franchised locations and fourteen owned stores spread across several cities in the six months that concluded on September 30, 2023. As of September 30, 2023, the corporation had 56 owned and 7 franchised locations. Due to ongoing legal processes, the company’s three Delhi-based outlets are currently temporarily closed, according to the statement.

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