NEW DELHI, MARCH 31: The Board for Industrial and Financial Reconstruction (BIFR) has asked the Industrial Development bank of India (IDBI) to verify Dunlop India Ltd's accounts and revert back to it within a month. At the much-awaited first hearing of the company's case on Tuesday, the board's decision acted as a dampener to the M R Chhabria-controlled tyre major's plan to earn for itself a `sick' status.According to normal BIFR process, the board after satisfying itself of the eligibility factor, appoints an operating agency to make its recommendations. Rarely does it ask a financial body to scrutinise the accounts of the company.
The BIFR decision under Section 16(i) of the Sick Industrial Companies (Special Provisions) Act 1985 assumes significance in light of the prevailing apprehensions about company's accounts. Usually, in most of the cases the board declares the company `sick', if it is satisfied that there are no discrepancies in the accounts presented to it and the company qualifies for the`sick' status.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
