A nationalised bank has, in a public notification, announced that DMDK founder and actor Vijayakanth’s properties worth ₹100 crore would be auctioned on July 26 to recover loans defaulted by the Andal Azhagar Education Trust managed by him and his wife Premalatha Vijayakant.
However, Ms. Premalatha, who is the party treasurer, told journalists on Friday that the issues regarding the mortgaged properties will be resolved before the auction date.
The notification issued by the Indian Overseas Bank, Mount Road Branch, said the immovable properties owned by Mr. Vijayakant would be auctioned to recover loans of ₹5.52 crore availed by the trust.
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The properties to be auctioned include Mr. Vijayakant’s house built on a plot measuring 3,013 square feet on Kannamal Street in Saligramam, 49 acres of land in Mamandur village in Kancheepuram district where the Andal Azhagar Engineering College is situated and commercial properties in Saligramam in his name.
The property at Mamandur village has been valued at ₹92 crore while the valuation for other properties on Kannamal Street and Kaveri Street has been pegged at ₹4.25 crore and ₹3.04 crore respectively.
Ms. Premalatha said the loan was taken to develop the engineering college at various stages since it was established 20 years ago.
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“This is the state of engineering colleges in the Tamil Nadu. The perception that there is lack of job opportunities for engineering graduates and handing out of licences to colleges without any basis are the reasons why most engineering colleges in Tamil Nadu are in debt,” she said.