Collector repossesses properties worth Rs 3,770 crore in Ahmedabad

Collector repossesses properties worth Rs 3,770 crore in Ahmedabad

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district collector confiscated properties

On Tuesday, the Ahmedabad district collector confiscated properties worth Rs 3,770 crore in a single day. These immovable assets belong to corporates houses and individuals who had defaulted on bank loans for periods ranging between 2 years and 15 years. The banks will take possession of these properties which will be auctioned after after value assessment.

District collector Vikrant Pandey said this was the one of the biggest properties attached in the state and the country in a single day.

The district collector under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, heard some 400 cases of borrowers on Tuesday. They had mortgaged properties worth Rs 4,700 crore. Of these, in 176 cases, the collector ordered confiscation of properties.

The major corporates entities whose properties were confiscated include Ms Rotomac Global Ltd, M/s Kandla Energy and Chemicals Ltd, M/s Max Signus Industries Pvt Ltd, M/s Greenland Infracon Pvt Ltd and M/s Himalaya Darshan Co-operative Housing Society Ltd.

These entities have together defaulted on repayments of Rs 2,456.16 crore. These names were released by district collector office.

He said, “Sarfaesi Act gives the district magistrate power to first seize properties of loan defaulters at the request of banks, so an auction of these properties (residential and commercial) can be conducted,” says Pandey. In most of these cases, borrowers failed to repay their loans. “Such procedures help banks reduce their non-performing assets (NPAs) and helps in their recovery or reconstruction,” says Pandey.

A senior official at the collectorate told TOI, “If a borrower, defaults for six months at stretch, banks give them a two-month period to start repaying. On failure to do so, banks declare the loan an NPA and ask the collector to confiscate the properties under the Sarfaesi Act and auction it to recover the dues,” says the official.

Ahmedabad: On Tuesday, the Ahmedabad district collector attached properties worth Rs 3,770 crore in a single day. These immovable assets belong to corporates houses and individuals who defaulted on bank loans for periods ranging between 3 years and 15 years. These properties will now be auctioned off after their value is properly assessed.

The district collector under powers vested by section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, heard some 400 cases of borrowers on Tuesday. They had mortgaged properties worth Rs 4,700 crore. Of these, in 176 cases, the collector ordered attachment of properties.

The major corporates entities whose properties were confiscated include Ms Rotomac Global Ltd, M/s Kandla Energy and Chemicals Ltd, M/s Max Signus Industries Pvt Ltd, M/s Greenland Infracon Pvt Ltd and M/s Himalaya Darshan Co-operative Housing Society Ltd. These entities have together defaulted on repayments of Rs 2,456.16 crore. These names were released by district collector Vikrant Pandey on Tuesday.

Pandey said, “Sarfaesi Act gives the district magistrate power to first attach properties of loan defaulters at the request of banks, so an auction of these properties (residential and commercial) can be conducted,” says Pandey. In most of these cases, borrowers failed to repay their loans. “Such procedures help banks reduce their non-performing assets (NPAs) and helps in their recovery or reconstruction,” says Pandey.

A senior official at the collectorate told TOI, “If a borrower, defaults for six months at stretch, banks give them a two-month period to start repaying. On failure to do so, banks declare the loan an NPA and ask the collector to confiscate the properties under the Sarfaesi Act and auction it to recover the dues,” says the official.

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