Extended secured term loans to SIHL and SVL: Tata Capital
Mumbai, Oct 28 (IANS) Tata Capital on Friday said it had extended Rs 200 crore of secured term loans to Siva Industries and Holdings Ltd and Siva Ventures Ltd after Tata Sons’ ousted Chairman Cyrus P. Mistry had alleged the lender would require a major “clean up on account of bad loans”, especially credit to the Sivasankaran group.
“Tata Capital Financial Services Limited had extended secured term loans to Siva Industries and Holdings Limited (SIHL) and Siva Ventures Limited (SVL) aggregating Rs 200 crore. The Facility was sanctioned by the Investment Credit Committee of the Board,” the company said in a statement.
The company said “due internal processes as applicable for sanctions of loans of such nature and value were followed”.
Mistry, in his letter to the Tata Sons board, had said that Tata Capital “had a book that required significant clean up on account of bad loans to the infrastructure sector”.
“The loan to Siva was under the strong advice of Executive Trustee Venkatraman, which has turned into a non-performing asset. All of this resulted in Tata Capital having to recognise abnormal size of NPAs,” he said.
Tata Capital also said that “the facility had a security cover” significantly in excess of the loans granted and was backed by “a personal guarantee of C Sivasankaran”.
“The Facility was settled in June 2014 and due disclosures were made in the audited financial statements of the Company,” the statement said.