A failed container terminal has been taken over by the Kandla port from ABG Infralogistics after depositing a security amount worth Rs 110 crore as lender’s dues with the registrar of the Ahmedabad high court where the case was decided recently.
In Gujarat, Kandla port is India’s biggest State-owned cargo handler by volume. While hearing an appeal filed by Kandla port against a lower court order on the termination of the container terminal last year, the Ahmedabad high court gave a consent order directing the port to take over the terminal.
The High court directed the port to submitRs 55 crore bank guarantee and another Rs 55 crore fixed deposit with the court’s registrar. The consent order came after the project’s lenders, Axis Bank and UCO Bank, requested the port in the high court to give their dues as security instead of paying in cash.