Saturday, November 19, 2011

SBI to auction assets of 21 defaulters in Patna

Kumod Verma, TNN Nov 17, 2011, 05.19PM IST

PATNA: In a major policy decision, the Stressed Assets and Resolution branch (SARB) of the State Bank of India, Patna, has decided to auction the mortgaged properties of 21 borrowers valued at Rs 4.21 crore at the branch premises on November 21.

These borrowers, who had taken loan from SBI, not only failed to repay the money but also did not turn up for negotiations with the bank, said additional general manager (AGM), SARB branch, Sunil Sharan Sinha.


He said there were altogether 21 borrowers who were declared defaulters long time ago under the bank rules. Their properties, which include plots, houses, shops and other assets, would be put on an open auction on November 21.

Sinha maintained that the bank has still kept its door open for defaulters till November 19 afternoon to reach a settlement with the bank in their own interest; otherwise, the bank would go ahead with the open auction plan under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Two of the borrowers, New Cozy Sweets and Golu Kiranaz, both located in Danapur, reached a settlement with the bank on November 16, he added.

According to sources, the SBI has kept the reserved price of the total properties to be auctioned at Rs 4.21 crore. They would thus be put on auction at not less than Rs 4.21 crore. A piece of land located in the prime area of Gardanibagh and a sprawling house in S K Puri have also been targeted for open auction, sources said.

The SBI AGM said this would be the first time that Patna SARB will auction mortgaged property in the state capital to realize the bank's dues from defaulters. He said that bank officials right from chief manager to general manager would be present at the open auction.

"The SBI usually restrains itself from taking such harsh steps. But faced with the apathetic attitude of borrowers towards repayment of their loans, the bank has been forced to take such a step," he said.

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