In its first-ever seizure of assets under the Securitisation Bill, passed by Parliament recently, Canara Bank has seized three mortgaged properties of a defaulting company in Bangalore on Tuesday.
The leading public sector bank has attached the immovable assets of Keltronix Office Automation Ltd, valued at Rs 65 lakh (Rs 6.5 million) for non-payment of interest on a loan of Rs 1.24 crore (Rs 12.4 million).
A senior bank official told rediff.com that the company's director Deepak Mehta had stopped paying interest since April 2002, resulting in the loan amount turning into a non-performing asset from September 2002, under the revised guidelines of the Reserve Bank of India on bad loans.
"We had given a 60-day notice to the defaulter on October 3, 2002, seeking payment of interest and the quarterly loan amount that were overdue. But there has been no response from either the company or its director," the official claimed.
The company's assets include the residential property of the director.
For recovering the balance loan amount after the properties are auctioned, the bank will file a suit in the Debt Recovery Tribunal, the official stated.
Incidentally, the bank has so far served the 60-day notice to 85 defaulters in the city alone.
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