IDUKKI: In another major incident of defaulted bank loan recovery in the state, Federal Bank on Wednesday took actual possession of the five-star heritage hotel, Elephant Court in Thekkady.
Bank authorities said the takeover was initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (also called Sarfaesi Act) after Vijaya Group, the promoters of the hotel, defaulted over `36 crore to the bank. The authorities added that
Vijaya Hospitality Resorts Limited, an initiative of Vijaya Group, had been given credit facility for construction of Hotel Elephant Court.
“Due to default in payment, the accounts got classified as Non-performing Asset (NPA) on March 31, 2013. We took possession of the hotel with assistance of court-appointed advocate commissioner, after completing legal proceedings. The bank had successfully defended multiple litigations by the borrower for the last seven months,” they said. Assistant General Manager, Federal Bank, T A Muhammed Sageer said the promoters can take back possession by remitting `2.5 crore before January 31 and the remaining amount before March 31.
“If the bank fails to realize the amount, we will proceed with the sale of the property under Sarfaesi Act,” said Sageer, who, along with the bank’s Deputy General Manager and recovery department head Harikrishna Pisharady, led the recovery proceedings. Hotel Pepper Vine, another venture of Vijaya Group, is also facing procedures under Sarfaesi Act, over default in payment. The account was classified as an NPA from June 30, 2015, and the court allowed the bank to proceed against the hotel if the prescribed amount is not remitted by January 31.