Financial Daily from THE HINDU group of publications
Tuesday, Nov 18, 2003
Financial Daily from THE HINDU group of publications Tuesday, Nov 18, 2003 |
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Money & Banking
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Non-Performing Assets SBI seizes properties of loan defaulters in Erode Our Bureau
Coimbatore , Nov. 17 THE Coimbatore module of State Bank of India has started initiating action against wilful defaulters of bank loans by taking constructive possession of a couple of properties in the Erode belt. Bankers state that they would make a similar move across different places in this module, comprising Coimbatore, Nilgiris, Erode, Salem, Namakkal and Dharmapuri districts, but in a phased manner. SBI's decision to take constructive possession has prompted a couple of defaulters to come to the negotiating table. Meanwhile, bank sources told this correspondent that out of the five properties that were attached in three cases at Bhavani in Erode district recently, one was a commercial property andthe rest were residential ones. The total value of the properties attached is said to be Rs 1.25 crore. Of the 209 notices served in this module involving Rs 21.55 crore, 68 of them were in Erode, Namakkal and Salem districts. Of these, the bank was able to recover a sum of Rs 67.55 crore from six accounts. Sources said that they would be proceeding to attach some more properties in the near future. The indication is clear. The bankappears to be serious this time in recovering its dues, having waited long enough for the defaulters to make the move. When asked what next after taking constructive possession, the Module's Deputy General Manager, Mr W. Chanti Babu, said the bank had identified an authorised agency, which would eventually take over and auction the property. Nevertheless, bankers are aware that in the case of residential properties, proceedings could go on under the Act, but possession could not be taken.
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