Private lender, Federal BankBSE -0.42 % has taken possession of a 3-star hotel named ‘The Pepper Vine’ at Thekkady owned by Daphne Hotels & Tourism.
The bank acquired the loan after the hotel defaulted repayment of its loan amounting to Rs 11 crores towards the bank. In a similar step towards recovering its dues from loan defaulters, the bank had taken possession of a five-star hotel namely M/s. The Elephant Court, Thekkady by invoking powers under the provisions of SARFAESI Act as they had defaulted more than Rs 25 crore to the bank.
Daphne Hotels & Tourism was sanctioned loan for construction of Hotel ‘Pepper Vine’ at Thekkady and for the subsequent purchase of plant, machinery, furniture and for interior decoration of the hotel. Though the construction is over and the hotel is fully operational, the borrowers willfully defaulted the repayment of loan, a statement by Federal Bank said.Daphne Hotels & Tourism was sanctioned loan for construction of Hotel ‘Pepper Vine’ at Thekkady and for the subsequent purchase of plant, machinery, furniture and for interior decoration of the hotel. Though the construction is over and the hotel is fully operational, the borrowers willfully defaulted the repayment of loan, a statement by Federal Bank said.
The repeated actions from bank, under the provisions of SARFAESI Act, against the defaulters had gained wide-spread appreciation from various corners in the industry and it turned out to be strong message to the big corporate defaulters, who unnecessarily drag the bank’s recovery actions by filing multiple litigations before various judicial forums, the release said.
Source: Economic Times