Loan Default: Bank seizes shopping complex in Saraswathipuram
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Loan Default: Bank seizes shopping complex in Saraswathipuram

April 29, 2019

Mysuru:  A large shopping complex in Saraswathipuram, popularly known as ‘Bake Point Complex’, has been seized by a bank as the complex owner had allegedly defaulted on loans. Following this, all the stores including Mohan Bhandar Supermarket have been asked to vacate.

It may be recalled that officials of Vijaya Bank, armed with an Order of the Debt Recovery Tribunal (DRT) in Bengaluru, attached the commercial complex at the junction on Vishwamanava Double Road in Saraswathipuram on July 4, 2018.

M. Nagaraj, the owner of the shopping complex, owed Rs.33 crore to Vijaya Bank, Kuvempunagar Branch, according to the Bank officials.

Speaking to Star of Mysore this morning, Sandeep, owner of Mohan Bhandar, said that they had gone on an appeal to the High Court again but the appeal was rejected and hence, they had no other option but to vacate the premises.

Asked about their next step, he said they will find another suitable place and restart the business. Along with Mohan Bhandar, other shops operating from the complex were also asked to vacate.

Vijaya Bank Regional Office Chief Manager Lokesh told SOM that they had taken possession of the complex, as the owner had failed to repay loan amount of Rs.1,91,66,893 with interest at 18 percent per annum from 14.12.2001 till the date of realisation (Rs. 33 crore).

ONE COMMENT ON THIS POST To “Loan Default: Bank seizes shopping complex in Saraswathipuram”

  1. swamy says:

    I think either the owner might have bribed and gotten hefty loan amount, or is stupid to get a bigger loan that he cannot afford. I don’t think the building can generate 2 crore per annum to service the loan. Now bank is holding the bag. This is the same tactics Mallya and Nirav Modi employed. Now bank will write off the loss as goodwill or bad loan and shareholders has to bear the consequence. Bank should sack the loan officer.

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