Shree Ashtavinayak Cine Vision In Deep Financial Woes

Through a public notice, the State Bank of India has taken symbolic possession of all the properties of Shree Ashtavinayak Cine Vision Ltd. today
Through a public notice, the State Bank of India has taken symbolic possession of all the properties of Shree Ashtavinayak Cine Vision Ltd. today

MUMBAI: Through a public notice, the State Bank of India has taken symbolic possession of all the properties of Shree Ashtavinayak Cine Vision Ltd. today

3 January 2013, the SBI had called upon promoter of Shree Ashtavinayak Cine Vision Ltd. Dhillin Mehta to repay the borrowed monies amounting to over Rs  29 crores. Due to default of payment within the stipulated period of 60 days given to Mehta, the Bank has via a notice on 18 March 2013 siezed all the properties of the Company.

Shree Ashtavinayak Cine Vision Ltd. which has produced big blockbusters like Ranbir Kapoor starrer ‘Rockstar’, Salman Khan’s ‘Dabangg’, Shahid-Kareena starrer ‘Jab We Met’ as well as the Golmaal franchise, has been courting trouble from quite a while now.

In January, Mehta was arrested by the Rajasthan Police at the International Airport on his way to Dubai. He owed the Jaipur-based producer Surender Kalra close to Rs 1.6 crore.

It is reported however, that before the head honcho of Shree Ashtavinayak Cine Vision Ltd. could be produced in a court for remand, one of the directors of the company had reached Jaipur and paid Kalra Rs 40 lakh in cash and handed over post-dated cheques of Rs 80 lakh.

We hear that film financer Raju Shah too has filed a separate case against Shree Ashtavinayak Cine Vision Ltd.for unpaid dues of about Rs 36 crore. On 21 June 2012, ‘Rockstar’ co producer Eros International had filed a winding up petition against Shree Ashtavinayak Cine Vision Ltd. accusing the production company of breaching the contract on ‘Bol Bachchan’ and ‘Golmaal 4’

The buzz is that other brokers and NBFC’s who have funded the company will also be making a movement towards their recovery.

The company’s stock price, which was close to Rs 500 in 2007-2008, is now circling the drain at Rs 1.39 at the close of trading at the Bombay Stock Exchange today.

With such monumental losses to the shareholders of Shree Ashtavinayak Cine Vision Ltd. it’s time the Securities and Exchange Board of India (SEBI) looks into the Company. Despite repeated attempts promoter Dhillin Mehta remained unavailable for comment.