When managers from SREI Venture Capital deposited Rs 650 crore at the Karnataka High Court this June, it was the last chapter of a story that began almost a decade ago. The saga, full of twists and turns, involves two failed airline entrepreneurs, one bankruptcy, and a Kolkata-based finance firm that was determined to get its money back.
It began in 2005 when Captain (retd) GR Gopinath, promoter of the now-defunct Air Deccan, approached SREI Infra for a loan to help finance the purchase of ATR turboprop aircraft.
As India’s first low-cost carrier, Air Deccan represented the middle-class consumption fairy tale; everyone wanted a piece of it. When Captain Gopinath looked for funding to buy small planes, financial institutions were only too willing to lend him money. SREI Infra was among many that did asset-backed loan transactions with Air Deccan. The feisty captain, however, soon ran out of steam.
(This story appears in the 08 August, 2014 issue of Forbes India. To visit our Archives, click here.)
In all their fundings, SREI will search their own recovery methods which will in turn fetch them good results in the longer run even though they suffer little bit in the recent times. Thier leader ship and future thinking is too good.
on Mar 12, 2016Recovery by SREI was not a rocket science. ICICI did not want sell the pledged shares because, they do not want to antagonize Vijay Mallya and other corporate crowd.
on Dec 6, 2014Recovery by SREI was not a rocket science. ICICI did not want sell the pledged shares because, they do not want to antagonize Vijay Mallya and other corporate crowd.
on Dec 6, 2014It is the lack of knowledge on the part of SBI led consortium of lenders who are otherwise actually entitled to the entire money received on sale of shares. If the lenders acts intelligently ( even now) SREI would have collapsed by this time.
on Aug 30, 2014Its great step taken our co,,,,for recovery of money
on Aug 16, 2014SREI has made a move which eventually turned out to be a huge click for them. This move is out of long term forecast and good market study.
on Aug 6, 2014