STOCK MARKET BSE NSE

Loan Default by Company to Put Metro Work in Limbo

The construction of the Kochi Metro Rail project is likely to be adversely affected after the Ernakulam

Published: 22nd February 2014 08:27 AM  |   Last Updated: 22nd February 2014 08:27 AM   |  A+A-

The construction of the Kochi Metro Rail project is likely to be adversely affected after the Ernakulam Chief Judicial Magistrate on Thursday appointed an Advocate Commissioner to take physical possession of two drilling rigs possessed by Bhumi Geo Engineering Ltd after the company failed to repay a loan taken from Dhanalaxmi Bank, Chennai. The court appointed Anju Jaffer as the Advocate Commissioner and asked her to file the report in this regard by March 19.

Dhanalaxmi Bank, Mount Road Branch, Anna Salai, Chennai had filed a petition against Bhumi Geo Engineering Ltd alleging that the company had, after taking a loan of `5 crore for purchasing drilling rigs, failed to repay the sum even after several notices were issued.

The bank had asked the court to take steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 after the company had defaulted on the repayment of an amount of `3 crore. The drilling rigs worth `2.5 crore each, had been purchased in 2007 and 2008 by the company.

According to the petition of the bank, these machines are currently in use for the construction work of the Kochi Metro project at the Edappally site. The bank had sought the court’s intervention in the matter.

However, DMRC officials said that they had not received any information regarding such a decision and would only intervene if alerted by the contractors.

Stay up to date on all the latest Kochi news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp