The company was established by the South Korean conglomerate Daewoo Group, which was one of the largest chaebols (large business conglomerates) in the country at the time. Daewoo Motors initially started as an importer of cars but soon expanded its operations to include the manufacturing and assembly of vehicles.
Over the years, Daewoo Motors has been known for its innovative designs and high-quality products. The company's flagship model, the Daewoo Matiz, was a popular small car that was sold in many countries around the world. It was known for its sleek and modern design, as well as its fuel efficiency and affordability.
In addition to cars, Daewoo Motors also produced commercial vehicles such as trucks and buses. The company's buses were especially popular in India, where they were used for public transportation in many cities.
However, despite its initial success, Daewoo Motors faced financial difficulties in the late 1990s and early 2000s, which led to the company's eventual bankruptcy in 2002. The company was later acquired by General Motors, which continued to sell Daewoo-branded vehicles in certain markets.
Today, the legacy of Daewoo Motors lives on in Greater Noida, where the company's former manufacturing plant is now a landmark of the city. Although the plant is no longer operational, it serves as a reminder of the impact that the company had on the local economy and community.
Daewoo Motors is a company that has left an indelible mark on the history of Greater Noida. Its innovative designs and high-quality products made it a leader in the automobile industry, and its legacy continues to inspire future generations of entrepreneurs and business leaders in the region.
The Uttar Pradesh government has initiated discussions with the Asset Reconstruction Company India Limited (ARCIL) to resolve outstanding dues amounting to Rs 778 crore associated with a key industrial parcel in Greater Noida. This land, formerly belonging to Daewoo Motors, was transacted at a price lower than the initial offer presented by the Uttar Pradesh State Industrial Development Authority (UPSIDA). Expressing a keen interest in reclaiming the land, UPSIDA has approached ARCIL with a plea to halt the ongoing auction led by the Debt Recovery Tribunal. The current market valuation of the land is estimated to range between Rs 2,500 crore to Rs 3,000 crore.
Daewoo Motors, during its transition from DCM Toyota Limited to Daewoo Motors India Limited, obtained approval for the name change along with a transfer levy of Rs 6.97 crore. However, Daewoo Motors failed to transfer this levy amount to UPSIDC. Subsequently, the Debt Recovery Tribunal (DRT), Mumbai, sold the land to M/s Pan India Motors Pvt Ltd. In response, UPSIDC consented to the transfer on June 28, 2010, upon payment of a transfer levy of Rs 8.36 crore and a pre-due amount of Rs 22.24 crore. Despite Pan India Motors depositing only 25% of the transfer levy (Rs 2.12 crore), no further payments were made to UPSIDA.
As of March 31, 2023, the outstanding amount on the plot is Rs 777.84 crore, encompassing transfer charges, interest, lease rent, time extension fees, etc., to be paid by M/s Pan India Motors Pvt. Ltd. UPSIDA has communicated this situation and the pending dues to the DRT Court and ARCIL.
After Daewoo Motors ceased operations in 2004, its dues escalated to Rs 30,000 crore, prompting debt recovery proceedings by financial institutions like ICICI and IDBI. In March 2005, ICICI sold its loans to ARCIL, while IDBI transferred its loans to SASF. Pan India Motors took over Daewoo India's assets, assuming liability for UPSIDA dues, which amounted to approximately Rs 30 crore in 2010. However, Pan India defaulted on payments, leading to the total dues on the plot reaching Rs 778 crore by March 31.
Before recent auction proceedings, UPSIDA approached ARCIL to repurchase the plot, offering a 10% premium over the reserve price. Despite this, ARCIL proceeded with the DRT-led auction, selling the land at a lower price. ARCIL did not respond to the UP government's representation.
A representative from ARCIL declined to comment, citing the closure of the office due to Ganesh Chaturthi celebrations. Legal expert Aditya Parolia emphasized UPSIDA's strong case, emphasizing the need to present facts before the tribunal. The present market value of the land in Surajpur industrial area, Greater Noida, is estimated to be between Rs 2,500 crore to Rs 3,000 crore, according to an officer from the industries department.
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