more-inThe Madras High Court on Monday refused to quash, or even stay, an order passed by the Directorate of Enforcement on February 13 provisionally attaching 10.46 acres of land on which real estate firm VGN Developers is constructing a high-rise to house around 1,000 flats under the brand name VGN Fairmont at Guindy here. Case historyExplaining the history of the case, he claimed the property originally belonged to Hindustan Teleprinters, a public sector undertaking which borrowed from a consortium of banks led by State Bank of India. The banks initiated debt recovery proceedings for a total liability of ₹116.14 crore. Though several efforts were taken from 2011 to 2013 to get the property sold for a consideration between ₹209.54 to 250 crore, they did not fructify. Hence, VGN offered to purchase it through a private treaty as provided in rules framed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.

Source: The Hindu February 26, 2018 19:41 UTC