KOZHIKODE: The Chief Judicial Magistrate (CJM) Court here has directed lenders to confiscate the properties earmarked by Annam Steel Pvt Ltd Co as collateral to retrieve the Rs 200 crore loan it availed of from a bank consortium after the company defaulted on repayment.
The properties include the one owned by IUML leader ET Mohammed Basheer’s son E T Firoz, who is also the managing director of the company. The court asked advocate commissioner P T Srinarayanan Unni to attach the properties by October 21 and hand them over to the consortium.
The bank consortium comprises Punjab National Bank and Canara Bank. The banks had sanctioned Rs 100 crore each to the company in 2013. The loan was for a project to extract iron ore from Karnataka.
Company gave properties of 21 people as collateral for the loan.
They included Foreign Bazar in Kozhikode city owned by Firoz and his house at Malapparamba. The loan was declared as non-performing asset in 2015 and subsequently the bank consortium went to court.
Though bank officials had earlier went to attach the properties of Firoz and A T Muhammed Ali of Kuttikkattoor, the defaulters obtained a stay order.