Owner has defaulted on Rs. 37 crore loan, says official

A movie theatre at Sanjay Nagar in the city, owned by mining company V.S. Lad and Sons, was on Tuesday sealed by officials of Arcil, an assets reconstruction company, on behalf of Karur Vysya Bank in Sanjay Nagar following non-payment of dues.

According to sources, V.S. Lad and Sons had borrowed Rs. 37 crore from Karur Vysya Bank offering Vaibhav theatre as collateral. The company went into the list of defaulters due to non-payment of the loan. After serving many reminders and notices, the bank approached the City Metropolitan Court, which issued an order to take over the property.

On Tuesday morning, armed with the court order, a team of Arcil officials arrived at the theatre accompanied by police personnel and sealed the theatre. They pasted a notice on the main gate of the theatre intimating patrons and other people about the development.

A senior officer, who supervised the operation, said that the bank followed due legal procedure before taking over the property. “We are ready to return the property if the owner repays the dues,” he said.

Meanwhile, screenings of films at the theatre have been cancelled.

Keywords: Imran Gowhar

More In: Bengaluru