SBI moves to invoke Essar Steel Promoters personal guarantees of Rs 15K cr

Ahmedabad:The State Bank of India on Monday filed a recovery suit against Prashant and Ravi Ruia, before the Debt Recovery Tribunal (DRT) here in Gujarat.

Essar Steel Lenders led by the SBI are saddled with dues of over Rs 63,000 crore, including overdue interest and penalties.

The SBI will receive only a part of its dues as per ArcelorMittal's IBC Resolution Plan of only Rs 42,000 crore -- leaving lenders with balance dues of over Rs 20,000 crore, comprising principal, overdue interest and penalties.

The SBI sought the attachment of global assets of Ruias to recover its balance Essar Steel dues, through debt recovery proceedings at the DRT.

The bank hopes to recover its balance dues from Promoters Prashant Ruia and Ravi Ruia, by seeking attachment of their personal global assets

The move to invoke the personal guarantees of the Ruias had started about six to eight months ago.

A decree from the DRT would lead to the attachment on all personal assets of Ruias both in India and abroad.