BIFR keen to revive Bachchan firm

Income tax authorities and public service broadcaster Prasar Bharti were given eight weeks time by the Board for Industrial and Financial Reconstruction on Tuesday to resolve the outstanding issues with Amitabh Bachchan Corporation Ltd, a move expected to facilitate rehabilitation of the company, counsel for ABCL said.

A two-member bench of BIFR comprising N R Banerji and T R Surendaran directed the company and the other two parties to settle the issue within eight weeks, B S Nagar, who represented ABCL, said after a short hearing in New Delhi.

Following the directive of the quasi-judicial body entrusted with revival of sick companies, Amitabh Bachchan is expected to meet Prasar Bharti chief executive next month to sort out the issues, chief financial officer Rajesh Yadav said.

Pointing out that ABCL had already paid Rs 17 crore (Rs 170 million) owed to the broadcaster, Nagar said the only matter remaining to be resolved were modalities for free advertisements featuring the Bollywood megastar.

Exuding confidence that ABCL would come out of the purview of BIFR, Nagar said the corporation had already repaid most of its creditors and has shown substantial progress as far as rehabilitation scheme was concerned.

ABCL sought BIFR protection under the Sick Industrial Companies Act four years ago following erosion of its net worth and Industrial Development Bank of India was appointed as the operating agency.

In the case of tax department, a rehabilitation scheme approved by BIFR required that ABCL seek certain reliefs and concessions, an issue on which the company is yet to hear from the authority, Nagar said.

He said the bench had expressed the views that even if the issues were not resolved, the implementation of the scheme would not be affected, given the substantial progress made by the corporation.

Nagar said ABCL had improved its net worth following genuine efforts made by its promoters Amitabh Bachchan, his wife Jaya Bachchan and Samajwadi Party MP Amar Singh.

ABCL's net worth stood at around Rs 50 crore (Rs 500 million) last September, based on provisional accounts, he added.