EMTA, once biggest private sector coal mine operator, defaults, faces auction of assets
EMTA Coal, once the country’s largest private sector mine operator that suffered during deallocation of coal mines in 2014, is yet to recover from the setback.
Srei Equipment, which rents out construction and mining equipment, is auctioning 15 equipment leased out to EMTA Coal to recover over Rs 50 crore towards rentals.
EMTA has defaulted making payments against mining equipment taken on lease.
“The learned counsel representing the judgment-debtor seeks adjournment in order to consider the offers received by the receiver for sale of 15 assets. The matter shall appear on 24th February 2017. In the event no better offer is available on the adjourned date, the sale shall be confirmed in favour of the highest bidders on the basis of the bids already received by the receiver,” the Calcutta High Court said in a recent ruling.
The subsidiary of Srei Infrastructure Finance had earlier filed arbitration proceedings against EMTA.
Owned by billionaire Ujjal Upadhyay, EMTA was unable to stage a comeback following the mammoth deallocation of over 200 coal mines by the Supreme Court in 2014.