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.