Andhra Bank Labbipet branch here issued a demand notice to Vijayawada-based Agri Gold Projects Ltd for Rs.100 crore repayment. The bank gave the notice to the company under the Section 13 (2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act-2002.
It has been given 60 days' time to repay the loan failing which the bank could take the possession of securitised assets of Agri Gold, including its head office, to auction them, according to sources.
They said that the company was dealing with the generation of electricity using biomass as fuels and execution of infrastructure projects. It has been availing credit facilities from Andhra Bank since May 2009, including a corporate loan of Rs.26 crore, working capital term loan of Rs.65 crore and a short-term loan of Rs.20 crore.
A few weeks ago, officials of the Income Tax Department raided two offices of the company in Vijayawada to collect more details about its transactions. The raids were carried out after a series of complaints against the company.
Depositors in different parts of the State staged protests in front of the company offices for the delay in payment of their deposits. They urged the Government to take necessary steps in getting their deposits.
