Daewoo Motors India Ltd vs Union of India and Ors
The petitioner (Daewoo Motors India Ltd.) has referred this writ petition seeking submission of Writ commanding Respondent No. 1 to withdraw certain demand notices issued by the Customs Department, for the relevant band guarantees provided by Respondents No. 2. on behalf of applicant 3 and further answer No. and they have applied to Guarantee No. 1 for the direction of non-payment of the guarantee amount.
The bank guarantees were given by the applicant company to the Customs Department at the time of exemption from customs duty in respect of plants and equipment, including the relevant period i.e. 1995-1999 under the terms of export and import policy imported by the applicant under the license covered by the EPCG scheme. It was a condition of the Exemption Notice No. 111/95 / Customs dated 5.6.1995 issued under Section 25 (1) of the Customs Act, 1962 that the bonds for the amount speciﬁed by the customs oﬃcers should be issued on the importer and the importer himself on FOB basis. Equivalent to six times the CIF value of the goods made, or alternatively four times the CIF value of the goods imported on a net foreign exchange basis but for a speciﬁed ﬁxed amount of eight years, full exemption from customs duty, while in case of additional duty only up to 10%.
The High Court held that the writ petition contained disputed questions of fact and it would not be appropriate to use the additional-general jurisdiction of the High Court under Article 226 of the Constitution as a subject matter relating to the release of a bank guarantee. It also observed that the order passed before the High Court was a court order and in that view, the writ petition should not be entertained. Thus, on July 16, 2002, the writ petition was dismissed. It is against the accuracy of this order that the existing appeal has been selected.
As for the CIF value of licenses over Rs 100 crore, the court allowed the release of the bank guarantee, but in the case of licenses with a CIF value of less than Rs 100 crore, the ﬁrst respondent was free to release the bank guarantee. In the current appeals, we are only concerned with licenses where the CIF value is over Rs 100 crore.
Daewoo Motors to be auctioned
The property of South Korea's well-known automobile company Daewoo Motors India Ltd. will be auctioned again on April 11. DRT Mumbai has set a target to recover around Rs 2,250 crore through it. Earlier in 2008, Daewoo was acquired by the newly formed Pan India Motors. In India, the company closed its business in 2003-04, and it is being auctioned 15 years later.
In a notiﬁcation issued by the Debt Recovery Tribunal (DRT) Mumbai, it has been told that the auction will be in two phases. In the ﬁrst batch of e-auction, 204 acres of land located in
Greater Noida, Uttar Pradesh will be auctioned, which includes buildings and other items, with a minimum reserve price of Rs 528.61 crore.
Apart from this, those who are successful in bidding will also have to pay the outstanding amount of 66.58 crores of Uttar Pradesh State Industrial Corporation. In the second batch of the auction, there are other properties on the same plot, which will be put up for auction, whose minimum reserve price has been ﬁxed at Rs 83.01 crore. Those who have worked with Argentum Motors said that separate bids should be made for land and equipment.
This is not the ﬁrst time that the company's assets are being sold. Before this, DRT Mumbai started the auction process of the property through Pan India Company in 2006. Among the shareholders of Pan India Motors are Firstrand Bank, a South African major banking company Global Investment Company D.E. Shaw, IL&FS, Ajay Singh, founder and chairman of Spice Jet, and BVR Subbu, former chairman of Hyundai India.
Industry sources said that this responsibility has been entrusted to C1 India, a Delhi-based Neemalihak. Despite repeated attempts, the company refused to comment on the development and did not respond to an email from IANS seeking details of the auction. Ravindra Kumar, an activist of Daewoo Motors Employees Union, said that the company has to repay the debts of seven lenders like ICICI Bank, IDBI, Yes Bank, and State Bank of India.