The country's largest lender State Bank of India (SBI) on August 16 moved the National Company Law Tribunal (NCLT), filing a petition to initiate insolvency proceedings against debt-ridden Bajaj Hindusthan Sugar Ltd (BHSL).

"We understand that State Bank of India, financial creditor through its advocate has initiated Corporate Insolvency Resolution Process of Bajaj Hindusthan Sugar Limited before the Hon'ble National Company Law Tribunal, Allahabad Bench under Section 7 of Insolvency and Bankruptcy Code 2016. This disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," BHSL said in a regulatory filing

Bajaj Hindusthan is India's largest sugar manufacturer and ethanol manufacturing company. It was declared a non-performing asset (NPA) after it defaulted on payments related to a debt of Rs 4,814 crore.

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The company has 14 sugar mills, all located in the North Indian state of Uttar Pradesh. These include Gola Gokaran Nath, Palia Kalan, and Khambarkhera (district: Lakhimpur Kheri), Barkhera (district: Pilibhit), Kinauni (district: Meerut), Gangnauli (district: Saharanpur), Thanabhavan and Budhana (district: Muzaffarnagar), Bilai (district: Bijnore), Maqsoodapur (district: Shahjahanpur), Pratappur (district: Deoria), Rudauli (district: Basti), Kundarkhi (district: Gonda) and Utraula (district: Balrampur).

The company has a cane crushing capacity of 1.36 lakh tonnes per day and an alcohol distillation capacity of 800 kilolitres per day.

Besides sugar, the Shishir Bajaj-led Bajaj Group has interests in power, ethanol, real estate, personal care products and infrastructure.

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Shares of Bajaj Hindusthan Sugar ended at Rs 10.25, down by Rs 0.44, or 4.12 percent on the BSE.

(Edited by : Shoma Bhattacharjee)