The state cabinet on Tuesday approved the closure of the Maharashtra Asset Reconstruction Corporation Limited, which was established in 2022 in a bid to rebuild, modernize and ensure proper disposition of distressed government assets.
The company is modeled on the National Asset Reconstruction Corporation Limited, which was formed by the central government in 2021. The state has invested a capital of Rs 300 crore.
An official said that the Reserve Bank of India had refused to grant a license to the state asset reconstruction company. “Because of this, it will be legally impossible for the company to operate,” the official said. “The decision to close the company was taken at the cabinet meeting held today to prevent continued expenditure on this company.”
One of the company’s objectives was to support cooperative sugar mills in Maharashtra. Central cooperative banks in ailing areas as well as idle industrial assets of Marathwada, Vidarbha and Konkan Development Corporations were also to be supported.
According to a proposal by the state Ministry of Finance when it was formed, the company was to rebuild parastatal, government and cooperative assets that were financially sick or opaque in operation. It was then announced that the government would take responsibility for looking after the welfare of members, partners, beneficiaries and ordinary citizens associated with these assets.
The Company had an Additional Chief Secretary (Finance) as its Chairman and a Secretary (Financial Reforms) as its Managing Director.
The directors of the company were to be the Joint Secretary (General Undertakings), Additional Chief Secretary (Co-operation), Principal Secretary (Textiles) and Principal Secretary (Industries). Independent directors have also been appointed for the company.
(Tags for translation)Asset Reconstruction Company Closed
