Chandigarh: High drama was witnessed at Hotel Park Plaza on Friday when around 40 bank officials along with supporting staff and police officials arrived to seal the hotel. Hotel management had deployed bouncers to thwart the bank officials. After a three-hour-long ordeal, hotel was sealed at 1:45 pm.
However late in the evening, Punjab and Haryana High Court ordered the stay on sealing but handed over financial operations of hotel to banks till August 31. Hotel was made operational by 6:30 pm. Besides, the court also directed all the parties concerned to appear before Debt Recovery Tribunal (DRT) and request DRT to consider the pending case between hotel management and the banks on the next hearing. The DRT will hear the case on August 29.
Rs 700 crore property was sealed for Rs 130 crore debt that owners owe4 to Punjab National Bank, Union Bank of India and Assets Reconstruction Company of India (ARCIL).
Initially, ARCIL stake was owned by State Bank of India (SBI) which further sold its debt stake to ARCIL.
The bank officials claimed that notice of sealing the property was pasted on the walls of hotel three days prior and the hotel management was very well informed about the action.
Recently the District Magistrate (DM) had ordered to take physical possession of the hotel on an application by these banks.
The team of Punjab National Bank led by AGM S N Gupta and the team of Union Bank of India was led by Senior Manager Pankaj Chaudhary.
Gupta said, “We have been asking for debt recovery from past many years but as hotel management failed to repay the loans worth Rs 130 crore, the action by orders of the court was taken and we have taken physical possession of the hotel.”
Similarly, Pankaj Chaudhary said, “It is the orders of central government to get the debts recovered from the defaulters. We are doing our duty as bank is empowered to take physical possession following the orders of court.”
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