Indian Bank on Wednesday, took over physical possession of two properties of Saravana Stores (Gold Palace) in T. Nagar, as per a court direction.
The bank took over the possession of the store for non-payment of dues, under provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
In May 2021, Indian Bank had declared Saravana Stores Gold Place a fraud account and said the nature of the fraud was in the form of diversion of funds. The bank had said the account was a NPA (non-performing asset) and the outstanding amount at that time was ₹230.74 crore and it had made a provisions of ₹115.32 crore as on December 31, 2020.
According to sources, the dues now amounts to ₹480 crore along with interest.
The Chief Metropolitan Magistrate at Egmore had appointed R.S. Dhuriyan as Advocate Commissioner in the case, via an order dated September 8, 2021. Based on the order, the Advocate Commissioner and bank officials had affixed notices on the said properties on December 31, to handover possession within seven days. Since the possession was not handed over, the properties were taken over on Wednesday morning with police protection.