New Delhi: NCLAT has directed to release 75 pc of the escrow account funds to BKEL's lenders, as per the order. BKEL is affiliated with ITNL. In response to the State Bank of India's plea, NCLAT dismissed it, stating that there were no valid reasons for the Board's decision to not proceed with interim distribution as per the Concession Agreement and the Escrow Agreement. NCLAT stated in its ruling that 75 per cent of the funds in the escrow account, as stated in the Escrow Agreement, will be distributed as interim payment to the lenders.
The remaining funds will be allocated for operation, upkeep, and additional expenses. Nevertheless, it also stated: "Lenders must also promise to reimburse the received amount if it is later determined that they were not entitled to it. "SBI had asked the NCLAT for permission to make an interim payment of Rs 175 crore to secured lenders from the funds in BKEL's escrow account.
As of September 14, 2023, BKEL had not made any payments on its loan since January 31, 2020, and there was Rs 236.82 crore in the company's escrow account. During the group meeting, the main bank and other banks asked for a temporary cash distribution from the company's funds. BKEL is a special-purpose entity established by ITNL to oversee the progress of a road project in the Baleshwar-Kharagpur section of NH-60 located in Odisha and West Bengal. On April 24, 2012, NHAI and BKEL signed a concession agreement. BKEL utilized financial services provided by the State Bank of Patiala along with two other banks - Allahabad Bank and IL&FS Financial Services
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