Banks seize assets of ex-CM Manohar Joshi's trust for loan default

MUMBAI: State-run Bank of Maharashtra has taken possession of Rs 68 crore worth of immovable properties belonging to Kohinoor Education Trust, which was founded by former CM and senior Shiv Sena leader Manohar Joshi.


The Bank of Maharashtra, acting on behalf of other lenders-State Bank of India and Bank of India-took possession of the properties in

Kurla

and Khandala, under the

Securitization

and Reconstruction of Financial Asset and Enforcement of Security Interest (Sarfaesi) Act, according to a public notice on Monday.

The Kohinoor Education Trust owes nearly Rs 16 crore to Bank of Maharashtra, Rs 38.63 crore to

State Bank of India

and Rs 13.18 crore to Bank of India. The trust runs Kohinoor Business School and Kohinoor American School in Kurla.

The lender has asked the borrower, Kohinoor Education Trust; its personal guarantors, Unmesh Manohar Joshi, Madhavi Unmesh Joshi and Anagha M Joshi; and corportate guarantors, Hotel Airport Kohinoor and Kohinoor Planet Construction, to repay the amount within 60 days."Since the borrowers having failed to repay the amount, the notice is hereby issued to the borrowers/guarantors that the banks have taken possession of the properties," reads the notice.

Sarfaesi allows secured creditors who have given loans above Rs 1 lakh to attach the property of defaulters after giving them a notice. Lenders do not have to go to the court to attach the properties. Once the asset is attached, the lenders can put them up for e-auction. Bankers say that currently there is a downturn in real estate and it is difficult to sell specialised properties.

Lenders said that the auction process is initiated only if there is no move by the borrowers to repay within 60 days. In most of the cases, the possession under Sarfesi is symbolic with borrowers continuing to occupy the property. To obtain physical possession of the property, borrowers need to take the assistance of the district magistrate. tnn & agencies

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