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State Bank Of India Pleads To Enforcement Directorate

Courtesy/By: Utkarsh Yadav | 31 Aug 2018

In a recent case in Madras High Court, SBI submitted to initiate proceedings against Kanishk Gold PVT. LTD. The violators owed a sum of RS. 820 Cr to a team of banks which are lead by SBI. The notice also seeked to terminate the current proceedings against the violaters which was being headed by the Enforcement Directorate. The SBI and sister banks have issued notices for the total collection of debts through the Debt Recovery Tribunal II. The directors of the violating company have been warned to not attempt evasion of proceedings by escaping the country before the matter has been concluded. In response, the company has transferred the title deeds of properties possessed by it, giving the prosecution power to foreclose the properties. Following the transaction, the deeds of nine properties has been given to SBI and subordinate banks as securities.

However, the ED issued directions to the prosecution that the aforementioned securities, which should give them possession of the properties, were not to be dealt with until the ED says so. Anguished by this warning, SBI stated that the intervention of the ED is preventing them from recovering the debt, and moved to quash the proceedings by the ED.

Courtesy/By: Utkarsh Yadav | 31 Aug 2018