HYDERABAD: A division bench of the Telangana High Court upheld the decision of the Union Bank of India and its consortium of banks declaring the accounts of Golden Jubilee Hotels Private Limited as fraud as per the provisions mentioned in the Master Circular of Frauds issued by the Reserve Bank of lndia (RBI).
The consortium of banks led by Union Bank of India had given a total of Rs 552.39 crore loan as on March 31, 2018. Chief Justice Satish Chandra Sharma and Justice N Tukaramji, while dismissing the plea filed by Yashdeep Sharma, promoter and director of Golden Jubilee Hotels, made it clear that the court has carefully gone through the judgments relied upon by the counsel of the petitioner.
The division bench said that the formation of opinion is based upon the findings arrived in the forensic audit report and the account of Golden Jubilee Hotels was rightly declared as fraud keeping in view the audit report.
There is no illegality or infirmity in the decision making circumstances of this case. The action has been taken against Golden Jubilee Hotels by following due process of law, and therefore, this court does not find any reason to interfere with the order impugned, the High Court said.
Over Rs 552 crore loan was given in 2018
The consortium of banks led by Union Bank of India had given a total of Rs 552.39 crore loan as on March 31, 2018 to the Golden Jubilee Hotels Private Limited.