Rs. 33 crore debt recovery: Bank officials seize shopping complex in Mysuru

Mysuru:  In an early morning operation, the officials of Vijaya Bank, armed with an Order of the Debt Recovery Tribunal in Bengaluru, attached a commercial complex at a junction on Vishwamanava Double Road in Saraswathipuram here.

M. Nagaraj, the owner of the shopping complex, which houses many shops, owed Rs. 33 crore to Vijaya Bank, Kuvempunagar Branch, according to the Bank officials.

As the complex owner had defaulted on repayment of loans along with accrued interest, the Bank moved the Debt Recovery Tribunal (DRT) in Bengaluru for recovery of loans. The DRT, which heard the Bank’s plea, issued an order directing for physical possession of immovable property mortgaged by  Nagaraj for availing the loan.

Following the Order, the Bank officials began taking physical possession of the complex after taking an inventory of all materials and movable properties belonging to the tenants in the shopping complex.

Saraswathipuram Police provided tight security.

The complex owner Nagaraj, a native of Bannur, had availed loan from Vijaya Bank, Kuvempunagar branch, about 17  years ago for construction of the complex and a house in Kuvempunagar. After Nagaraj defaulted on repayment of loans, the Bank had auctioned his Kuvempunagar house, following which Nagaraj stayed in a small portion of the complex, said Bank officials.

Speaking to Star of Mysore, Nagaraj said that he had taken a loan of Rs. 1.45 crore from Vijaya Bank after pledging the complex in 2006-07.

However, DRT Order pasted on the walls of the complex states, “…recovery of an amount of Rs. 1,91,66,893 with interest at 18 percent per annum from 14.12.2001 till the date of realisation…”

The tenants of the complex used to pay the rent directly to DRT, through which Vijaya Bank used to adjust the amount so credited for the loans that he had borrowed, Nagaraj said and added that this was the practice since the last several years.

Maintaining that he had repaid over Rs. 2 crore loan, Nagaraj accused some top Bank officials of holding a personal grudge against him.

“Yesterday, I had been to the Bank with a Rs. 1.3 crore DD as part of loan repayment. When I told the Bank officials that I will clear the loans as a one-time repayment and sought some time, the Bank officials refused to heed to my request. Even the High Court had passed an Order asking the Bank authorities not to vacate the tenants. But the Bank’s action today is a violation of the HC order,” claimed the 70-year-old Nagaraj and added that he was seeking a  legal recourse.

Meanwhile, Jayaprakash, the advocate representing Mohan Bhandar, one of the major tenants of the complex, speaking to Star of Mysore said that his client was in no way concerned with the Bank’s physical possession of the property as Mohan Bhandar was only one of the tenants.

Pointing out that the dispute over repayment of loans along with accrued interest was purely between the complex owner  Nagaraj and Vijaya Bank which had extended the loan, he said that he was looking at various legal options for which 3-4 days time was needed.

The advocate further said that the Bank officials, while taking possession of the immovable property, were recording all the inventories in Mohan Bhandar and all other shops in the complex as directed by the DRT. He maintained that the Bank was putting the tenants in trouble for loan default of building owner.

Mohan Bhandar Proprietor Sandeep, speaking to SOM said that he was shocked to learn that Vijaya Bank officials had brought an attachment Order from DRT.

Pointing out that the default on repayment of loans was only between the complex owner and Vijaya Bank, Sandeep said that Mohan Bhandar had taken lease of the major portion of the complex for 30 years after duly entering into an agreement  with the complex owner.

He further said that he requested the Bank officials to wait for some more days, but the officials, expressing helplessness, began taking physical possession of the complex.

“I will discuss with my advocate on seeking legal remedies for loss of business,” he added.

The post Rs. 33 crore debt recovery: Bank officials seize shopping complex in Mysuru appeared first on Star of Mysore.

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