Bankers to auction Agri Gold properties

Bankers are gearing up to auction the properties of the Agri Gold group to recover their dues, which have spurted, sources say, to Rs. 391 crore till date.

A consortium of bankers had given the group a month’s time to pay up beyond which they would serve auction notices. That deadline will lapse at the end of June and the banks are likely to announce their next step decision in the first week of July.

However, the banks would have to take permission from the State government to auction the properties, which have been seized by the government. The bankers are planning to seek the permission from the government as the properties were already under hypothecation to them, sources say.

“It will take another three months to complete the process and for the actual auction stage to be reached,” said a senior banker, speaking on the condition of anonymity.

Andhra Bank (AB), State Bank of India (SBI), Indian Overseas Bank (IOB), Karur Vysya Bank (KVB), and Indian Bank are the banks that have extended loans to the group. Sources say that 60-day notice has already been served as per Reserve Bank of India (RBI) guidelines.

According to information, group company Agri Gold Foods and Farms has to repay Rs.82 crore to Andhra Bank and Rs. 20 crore to SBI. Likewise, Agri Gold Organics has to pay Rs. 55 crore to Andhra Bank and Rs. 20 crore to SBI. Agri Gold Projects owes Rs. 234 crore to AB, SBI, IOB, KVB and IB. The total dues amount to Rs. 391 crore, sources say.

The total loans sanctioned to the Agri Gold Projects is Rs. 269 crore. Of this, the group has repaid Rs. 35 crore, say sources.

A consortium of bankers has given the group a month’s time to clear dues

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Printable version | Apr 11, 2021 12:21:09 PM |

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