Tenants approach High Court

Mysuru:  The tenants of a commercial complex at a junction on Vishwamanava Double Road in Saraswathipuram here, which was seized on July 4 by the officials of Vijaya Bank, Kuvempunagar Branch, following the order by the Debt Recovery Tribunal (DRT) in Bengaluru, have approached the High Court to allow them to continue their business at the complex and the hearing will be held on July 12.

M. Nagaraj, the owner of the shopping complex, which houses many shops, owed Rs.33 crore to Vijaya Bank, Kuvempunagar Branch, according to the Bank officials. As the complex owner had defaulted on repayment of loans along with accrued interest, the Bank had moved the DRT in Bengaluru for recovery of loans. The DRT, which heard the Bank’s plea, issued an order directing for physical possession of immovable property mortgaged by Nagaraj for availing the loan, following which the bank officials armed with the DRT Order had seized the complex.

After the seizure, business activities of the tenants had closed down resulting in them suffering losses. Sandeep, proprietor of Mohan Bhandar, which is housed in the complex, has now approached the High Court, urging to allow them to continue with their business as they have nothing to do with the loan default.