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Tuesday, Jun 11, 2002

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Gemini Towers comes up for public auction

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The unfinished building secured by Indian Bank that is to be auctioned by the DRT in Chennai.

CHENNAI, June 10

INDIAN Bank may recover its Rs 132 crore from Ravi Shankar Industries this year, as the property offered as security has now come up for public auction.

On July 10, `Gemini Towers' will be auctioned off at the office of the Debts Recovery Tribunal-I. The DRT has fixed an `upset price' of Rs 93 crore, below which the property will not be sold.

Ravi Shankar Industries, which is involved in real estate development and owns Gemini Colour Labs (a film processor), owed Indian Bank Rs 160.25 crore. Further, it owes Rs 18.53 crore to Indbank Housing Finance and Rs 1.47 crore to Indbank Merchant Banking, making in all a total of Rs 180.25 crore to Indian Bank and its subsidiaries.

This amount includes the accumulated interest till June 16, 1997, the date the suit was filed against the group, for recovery. The book balance, or the amount outstanding on the date the loan turned non-performing, was Rs 132 crore.

It was agreed by both the bank and the company that the latter would pay Rs 132 crore. A `consent decree' was passed by the DRT and the money should have come to the bank early last year. But the company did not pay. Instead, it obtained an extension of time till December 31, 2001.

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