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Indian Bank has taken physical possession of Saravana Stores (Gold Palace) located on Ranganathan Street in T. Nagar, a commercial hub of Chennai.
A poster by the Bank affixed in the store says, “This property is under the physical possession of Indian Bank (SAM Branch).”
The Bank took the action under the SARAFESI Act and was executed by Court appointed Advocate Commissioner RS Dhuriyan with the help of the local police.
Non-performing asset
In May 2021, Indian Bank declared Saravana Stores (Gold Palace), a non-performing asset account with outstanding dues of ₹230.74 crore, as “fraud” and reported it to the Reserve Bank of India, the Bank informed the stock exchanges.
The Chennai-headquartered Indian Bank had already made a provision of ₹115.32 crore against the account. In March, Indian Bank issued a sale notice of two immovable properties belonging to Saravana Stores (Gold Palace) to recover dues of ₹288 crore from its partners, guarantors and title holders.
Formed in 2006, Saravana Stores (Gold Palace) was engaged in the retailing of jewellery and textiles, among others.
A letter by Advocate Commissioner Dhuriyan on January 18 to the Assistant Commissioner of Police says that pursuant to the issue of warrant of commissioner by the Chief Metropolitan Magistrate at Egmore, he along with the bank officials affixed notices in the property on December 12, 2021 to handover the peaceful possession of the property within seven days.
However, the party has not provided the possessions till date. So the warrant has to be executed on January 19.
“I request you to provide police protection to take over the said property without any dispute/break-open of the scheduled property for the purpose of taking inventory of the articles on January 19,” the letter said.
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