NEW DELHI, Apr 2:
An NRI businessman based in Singapore has charged Jammu & Kashmir Bank with indulging in “misuse” of power after it cancelled the auction of a mortgaged property of a defaulter to his company without assigning any reasons.
The businessman H D Gupta claimed at a press conference here that a company Goldkist Mobile Academy bought a piece of land at Najafgarh in Delhi from Jammu & Kashmir Bank in a public auction by becoming highest bidder in July, 2011 and had paid Rs 16.03 crore for the property, which was put for auction to recover debts of a defaulting company.
He alleged that the bank did not inform the Debt Recovery Tribunal for several months that it has sold the property and collected the full money.
The bank did not apply to the Tribunal for Sale Confirmation to the winning auction bidder and cancelled the bid by “misusing the power stated in term sheet that bank can cancel the bid anytime, probably with collusion with previous borrower probably for some personal benefits,” Gupta said.
He claimed that the bank returned his money without paying interest for 18 months and sold the property to some other entity at a much higher rate than what was agreed in 2011 again without informing the Tribunal where the matter is pending.
However, Jammu & Kashmir Bank in a statement said “the party levelling allegations against the bank has approached the DRT Delhi, which has directed the concerned parties to maintain the status quo with regard to property in question. Since the matter is subjudice, we cannot comment.” (PTI)
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