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Indian Bank puts Gautham Menon’s property on the block

Comments Off on Indian Bank puts Gautham Menon’s property on the block   |   March 12, 2014    08:51am   |Contributed by manoja

CHENNAI: The Kotturpuram branch of Indian Bank has invited tenders for auction of a property belonging to film producer and director Gautham Vasudev Menon in Adyar.

As per details on Tenders India (a government tender information system), the auction process for the property located on First Main Road in Indira Nagar, has begun with the tender value being quoted at 12.26 crore. The winning bidder, expected to put up 50 lakh as a deposit. The property is 7,091 sqft, and the market price of each ground (2,400 sqft) in the area is 4.5 crore to 5 crore.

“This particular account has been a non-performing asset (NPA) for some time and we are moving in as per the provisions of the Sarfaesi Act [Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002],” a senior official from Indian Bank said. As per the act, in cases of default in repayment of installments and non-compliance with the notice period of 60 days after the declaration of the loan as a non-performing asset, the lender can take action without intervention of court.

The e-auction of the property would be conducted by Matexnet. “Around eight buyers have evinced interest in the property,” said E Jagadish from Matexnet. The tender for auction was published on February 24 and the last date for offer submission is March 24.

Sources close to Menon said the producer owes the bank 60 lakh and he is looking to sort out the issue. “He has paid six installments and will not allow auction of the property,” a source said.

Indian Bank officials said they follow a case-by-case approach with respect to NPA recovery. “If the borrower comes forward to repay the dues even after putting up the notice as per the Sarfaesi Act, we are open to negotiations as our only aim is to recover our dues. There have been instances where the borrower has settled the matter after the notice for auction was put up,” a bank official said.

http://timesofindia.indiatimes.com/city/chennai/Indian-Bank-puts-Gautham-Menons-property-on-the-block/articleshow/31816829.cms

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