The State Bank of India finds itself in a challenging situation after providing a substantial amount to Praveen Ray Giridih Udyog. The bank is now faced with the task of recovering the full loan amount, which has proven to be a complex process due to various complications.
Disputes and Legal Proceedings
As the bank initiated the loan recovery process, new disputes began to arise on a daily basis. The matter involves Veer Steel Company, the State Bank of India, and Carbon Resources Company. More than a dozen cases have been filed, spanning from local police stations to the Giridih court and even the High Court. These legal proceedings have further complicated the loan recovery process.
Collateral and Auction
The owner of Veer Steel Company had taken a loan of 166 crore rupees from the State Bank of India, using a specific piece of land as collateral. However, the factory associated with the company closed down, resulting in the loan becoming overdue. In an effort to recover the loan, the bank proceeded with the seizure and auction of the collateral property.
Partial Recovery and Remaining Amount
During the auction, the bank managed to receive only 40 crore rupees so far, despite the sale of the entire land. This amount includes approximately 25 crore rupees from Carbon Resources Company for 101 acres and 15 crore rupees from ASSL Company for 15 acres. As a result, the bank is now faced with the challenge of recovering the remaining 126 crore rupees from the debtor’s properties.
Concerns and Legal Directives
The State Bank of India is concerned about whether the complete debt can be recovered after auctioning off all the debtor’s properties. The Giridih NCLT Court has also instructed the bank to attach all properties belonging to the debtor in order to recover the loan.
Allegations, Arrest Warrants, and Notices
During the possession of the auctioned property, allegations of manipulation in bank operations and falsification of documents have emerged. Consequently, the court has dismissed the anticipatory bail plea of borrowers Amit Sarawgi and Tulsi Goswami, and arrest warrants have been issued. Notices have also been posted at their respective residences. These developments have further complicated the situation for the bank.
Carbon Resources Company’s Refusal
Adding to the bank’s challenges, Carbon Resources Company has refused to purchase the 101-acre land in Manjhladih through the auction. The company’s director, Suresh Jalan, has stated in a written letter to the bank that the land is in dispute. They claim that since acquiring the land through the auction, false cases have been filed against them. Carbon Resources Company demands the return of their money and the reclaiming of the land.
The State Bank of India is now facing multiple hurdles in recovering the loan and is making every effort to address the various issues and resolve the situation.