Monday, Nov 1 2021 | Time 20:54 Hrs(IST)
image
Business EconomyPosted at: Nov 1 2021 8:34PM


Due process followed in selling Jaisalmer hotel project to an ARC after it turned NPA: SBI

New Delhi, Nov 1 (UNI) A day after former State Bank of India (SBI) Chairman Pratip Chaudhuri was arrested by Rajasthan police in an alleged loan scam, the bank on Monday said that all due process was followed in tagging the loan as non-performing asset (NPA) and assigning the same to an asset reconstruction company (ARC).
It has been alleged that a hotel project being developed by Gowdawan group in Jaisalmer was declared NPA by SBI for non-payment of dues. Further, the hotel was worth Rs 200 crore but sold for Rs 25 crore to an ARC during Chaudhuri's tenure as SBI Chairman.
The Rajasthan Police arrested Chaudhuri on Sunday from his residence in Delhi.
Listing out the sequence of events, the SBI said that ‘Garh Rajwada’ was a hotel project in Jaisalmer and was financed by the bank in 2007.
It noted that the project remained incomplete for over 3 years and the key promoter passed away in April 2010. Subsequently, the account slipped into NPA in June 2010.
As per SBI, various steps were taken by it for completion of the project as well as recovery of bank’s dues but they did not yield desired results. Hence as part of bank’s recovery efforts, the dues were assigned to an ARC for recovery in March 2014.
"This sale to ARC by the bank was done through a laid down process as per the policy of the bank," the SBI official statement said.
"We further understand that the borrower was subjected to IBC (Insolvency and Bankruptcy Code) process by the said ARC and the asset has been acquired by an NBFC in Dec. 2017, again through due process under the orders of NCLT, Delhi," it noted.
As recovery efforts failed, said SBI, approvals for sale to ARC were taken in Jan 2014.
"It transpires now that the borrower had initially filed an FIR with the State Police against the sale of asset to ARC. Aggrieved against the negative closure report filed by Police authorities, the borrower had filed a ‘Protest petition’ before the Hon’ble CJM Court," the statement said.
"Incidentally SBI was not made a party to this case. All the directors of that ARC including Mr Chaudhuri, who joined their Board in Oct. 2014, have been named in the said case. Incidentally, Mr Chaudhuri retired from the Bank’s service in Sep. 2013," it added.
The SBI further said that it appears from the copies of the proceedings that the Hon’ble Court do not appear to have been briefed correctly on the sequence of events.
"In as much as SBI was not a party to this case, there was no occasion for the views of SBI being heard as part of this proceedings," it said in the clarification.
The statement concluded saying, "SBI would like to reiterate that all due process were followed while making the said sale to ARC. The bank has already offered its cooperation to the Law Enforcement and Judicial authorities and will provide further information, if any that may be called for from their side."
UNI NK SHK2028
Tags: #Due process followed in selling Jaisalmer hotel project to an ARC after it turned NPA: SBI
More News

India's merchandise exports up 42 33 pc in October to USD 35 47

01 Nov 2021 | 8:22 PM

New Delhi, Nov 1 (UNI) Signalling a strong economic recovery, India’s merchandise exports in October 2021 rose 42.33% at USD 35.47 billion, compared to USD 24.92 billion in October 2020 and registered an increase of 35.21% over USD 26.23 billion in October 2019. India’s merchandise imports in October 2021 was USD 55.37 billion, an increase of 62.49% over USD 34.07 billion in October 2020 and an increase of 45.76% over USD 37.99 billion in October 2019. The trade deficit in October 2021 was USD 19.9 billion, while it was USD 98.71 billion during April-October 2021, according to official data from the Ministry of Commerce & Industry released here on Monday.

see more..

Axis Bank MOU with Indian Navy

01 Nov 2021 | 7:55 PM

Kolkata, Nov 1 (UNI) Axis Bank has reinforced its commitment to the Defence sector by signing an MOU with the Indian Navy, offering a Defence Service Salary package with best-in-class benefits and features under its 'Power Salute' initiative.

see more..

DMI Finance partners with Reliance Retail

01 Nov 2021 | 7:50 PM

Kochi, Nov 1 (UNI) DMI Finance Private Limited (DMI) on Monday announced its partnership with Reliance Retail Limited to provide a first-of-its-kind suite of digital finance options for Reliance Retail consumer electronics customers across India.

see more..

Hero Motocorp sells 5 48 lakh units of two wheelers in Oct

01 Nov 2021 | 7:49 PM

New Delhi, Nov 1 (UNI) Ushering in festive cheer amid signs of economic recovery, Hero Motocorp sold 547,970 units of two-wheelers in October, marking a sequential growth over the volume sales in the month of September, which saw despatch of 530,346 units of motorcycles and scooters.

see more..

Sunil Kumar Satya takes charge as Regional Executive Director, NTPC Southern Region

01 Nov 2021 | 7:39 PM

Hyderabad, Nov 1 (UNI) Sunil Kumar Satya has taken over as Regional Executive Director (RED) of NTPC Southern Region.

see more..
image