Liquor baron Kishore Chhabria has dragged Dena BankNSE 0.00 % to the Delhi High Court alleging the lender connived with an asset reconstruction company to transfer mortgaged land worth ₹72 crore though the land was disputed property.
Dena Bank advanced credit facilities in 1971 to Vinedale Distilleries, a Chhabria-owned Hyderabad-based liquor company that sat on 64-acres of land. The Chhabria’s dispute was with Aggarwal group. When the loan turned bad, the bank got hold of the land. The dispute between Chhabria’s firm Sanman Distributors and Aggarwal group continued.
In 2000, the bank filed recovery proceedings for the asset and subsequently claimed a one-time settlement in August last year before the debt recovery appellate tribunal for principal and interest worth ₹72 crore. Chhabria’s contention is that Dena Bank transferred the disputed land to ANA ARC ex parte.
“The bank invited bids at a much lower price of ₹47 crore without the consent of the company and, thereafter, transferred it to ANA ARC, a Bengaluru-based asset reconstruction company at ₹52 crore,” Chhabria’s firm Sanman Distributors, claimed in its petition filed with the Delhi HC. “Before the auction, we offered to pay the entire amount and requested to stop the e-auction which was done in haste. We are seeking a detailed investigation on the transaction that caused loss for Dena Bank and its shareholders,” said Sanman Distributors in its writ petition.
The liquor company also claimed the ARC has demanded ₹79 crore from Sanman for the 64-acre parcel as a settlement, higher than earlier amount.
Chhabria, who owns Allied Blenders, is not new to legal cases. He had fought court cases with former United SpiritsNSE 0.58 % promoter Vijay Mallya that went on for two decades. ABD declined to comment while Dena Bank didn’t respond to an email query sent to them.
