Financial Daily from THE HINDU group of publications
Tuesday, Feb 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 21, 2006 |
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Money & Banking
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Non-Performing Assets UTI Bank recovers Rs 10.5-cr Sumeet dues via land sale Priya Nair
Mumbai , Feb. 20 UTI Bank has sold two plots belonging to Sumeet Research and Holding Private Ltd in Ambattur Industrial Estate, Chennai, to recover its dues amounting to over Rs 11 crore. The first plot was sold in February 2005 for Rs 4 crore and the second one was sold in the first week of February 2006 for Rs 6.5 crore, a bank official said. With this sale, the bank's recovery has touched Rs 35 crore in 2005-06. In December 2005, the bank had successfully recovered Rs 21 crore dues from BPL, after it approached the Debt Recovery Tribunal, he said. In 2000, home appliances manufacturer Sumeet took a loan of around Rs 11-12 crore from UTI Bank. But as the loan was not repaid, the bank filed a case under SARFAESI Act in 2004 and took possession of two plots with buildings in Ambattur in February 2005. There was no activity in these plots for the last five years because the company has shifted the plant to Vapi and Navi Mumbai, said Mr Gopalkrishnan, Senior Vice-President, UTI Bank. The bank has yet to recover about Rs 1 crore from the company. The `Sumeet' brand name was also hypothecated with the bank and the bank might sell it if necessary, said Mr B. Gopalkrishnan. "Apart from possessing the brand, a flat belonging to the company in Worli is also mortgaged with us. We have got good quotes from several major players in the home appliances segment who are interested, as it is a reputed brand. But we do not intend to sell it immediately," Mr Gopalkrishnan said. As per the bank's valuation, the brand name is valued between Rs 5 crore and Rs 9 crore. The other properties in Chennai that UTI Bank has attached under the Securitisation Act include those belonging to Mr P.D. Kothari against claims of Rs 77.22 lakh, Kausan - Rs 1.05 crore and CAS Technologies - Rs 62.35 lakh. "We have already taken steps for taking physical possession of these mortgaged properties and will sell the same. We have effectively used the provisions of the SARFAESI Act and in almost 60 per cent of the cases, the borrowers came forward and settled," Mr Gopalkrishnan said.
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