The Hindu Business Line : BoI seizes complex for loan default

MOVING one after another, the Coimbatore zone of Bank of India has taken constructive possession of yet another property, this time, a commercial complex - SB Towers, on the Pollachi Main Road.

This is the fifth property taken over since November last. The possession notice issued last week under the Securitisation Act on SB Towers was for an amount involving Rs 7.63 crore.

Bank sources said that they had identified 3 agents for undertaking the seizure jobs. ``We have started evaluating the value of the machinery and other assets in the tea estate for auction. Since the defaulter has not been serious about repaying the bank's dues, we will have to initiate the next step, by inviting tenders and auctioning the property,'' the sources said.

An official lamented that the loan defaulters, while praying for time to repay their dues, failed to respond within the time frame specified by them. ``In the case of SB Towers, as soon as the defaulter learnt that the bank proposed to issue the possession notice, he sought a stay in the Court. We are confident of vacating the stay on legal grounds,'' he said.

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