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SBI puts off KSK Mahanadi Power NPA auction after I-T probe on ARCs

Business Standard  

The State Bank of India (SBI) has put off the sale of its non-performing asset loan of KSK Mahanadi Power scheduled on December 31 after the income tax department started an investigation against few asset reconstruction companies (ARCs). SBI has an exposure of INR 4,100 crore in KSK Mahanadi Power and the bank had set a reserve price of INR 1,423 crore for selling the loan to any ARC, bank, NBFC or a financial institution. The income tax department has initiated an investigation against several ARCs after it was found that several promoters are funding the ARCs via informal channels. As several other ARCs were expected to participate in the auction, the tax department has asked the bank to wait till the investigations are over.