SBI Files Insolvency Plea Against PC Jeweller Amid Financial Troubles and SEBI Scrutiny

27 Jul 2023 , 11:15 AM

State Bank of India (SBI) has filed an insolvency plea against PC Jeweller Limited at the National Company Law Tribunal (NCLT) in Delhi.

The plea was presented before the principal bench of NCLT on July 26 and has been adjourned for further hearing in the first week of August.

PC Jeweller faced financial troubles in February 2023 when banks decided to recall loans amounting to Rs 3,466 crore after the company defaulted on them. The loan recall process is initiated when lenders see problems in the borrower’s financial situation.

In its annual report for FY 2021-22, PC Jeweller disclosed that it owed Rs 3,278 crore to 14 banks, including SBI, Indian Bank, Union Bank, and Punjab National Bank. As per information, The major lenders and their outstanding amounts are: SBI – Rs 1,060 crore, Union Bank of India – Rs 530 crore, Punjab National Bank – Rs 478 crore, and Indian Bank – Rs 226 crore.

Apart from financial challenges, PC Jeweller also faced scrutiny from the Securities Exchange Board of India (SEBI) over insider trading allegations.

SEBI sought clarification on the sharp price movement of PC Jeweller’s shares on February 2. The case has raised concerns among investors and stakeholders, and its outcome will be closely monitored as it may have broader implications for the company and the market.

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