MUMBAI: Come December, banks will have to grapple with the ethical and financial dilemma of dealing with failed promoters who try to claw back control in troubled companies where they no longer call the shots by trying to outbid others in the race.
Promoter shareholders who use shell companies or tie up with offshore funds (acting as fronts) to regain control can be blocked by lenders, the Reserve Bank of India, and authorities like the Ministry of Corporate Affairs on suspicion and charges of round-tripping and laundering.
But bankers fear they will be in a predicament when such promoters, fearing they would be left with no standing in the business community, attempt a direct entry by coming up with offers that are better …
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