State Bank of India takes PC Jeweller to NCLT

The State Bank of India has taken fine jewellery brand PC Jeweller to the National Company Law Tribunal and made a plea to commence insolvency proceedings against the business. PC Jeweller now has to file a reply over defaulting on loans.  

“Total exposure outstanding as on 31 March, 2023 amounting to Rs 3,626.09 crore includes provision for interest up to 31 March, 2023 (the company has however disputed the same legally), which has been calculated based on management’s estimates, which stands accrued but not applied by banks post NPA [non-performing assets] down-gradation,” said PC Jeweller in its latest quarterly results, the Press Trust of India reported. 
 
The State Bank of India is the lead bank for the consortium which lent money to PC Jeweller, ET Bureau reported. A number of the banks involved have provided their confirmation of the outstanding loan amount up to the end of the 2023 financial year, while others have submitted figures without the applied interest. 

“Company’s accounts have been classified as NPA with its lenders since June 2021 and its resolution process had been underway,” said PC Jeweller. The business trades, manufactures, and retails diamond, gold, and silver jewellery and retails from its stores and e-commerce website.