CNBC-TV18's Sunanda Jayaseelan reports that primary lender State Bank of India has called for an auction of property pledged by Deccan 360 to recover dues.
It looks like Vijay Mallya is not the only airline chief who's facing the ire of lenders. Erstwhile Air Deccan founder GR Gopinath's loss-making air cargo venture, Deccan 360, has run into rough weather as primary lender State Bank of India (SBI) has called for auction of property pledged by Gopinath in order to recover dues, reports CNBC-TV18's Sunanda Jayaseelan, quoting sources.
SBI, in an advertisement in the papers on Friday, has called for sale of seven properties amounting to a super built-up area of almost 9,000 sqft in the heart of Bangalore. The properties were pledged towards raising loans worth nearly Rs 211 crore in May 2011.
The loans were taken for operational purposes and the company began defaulting on those loans starting September 2011. The advertisement invited interested parties to take participate in the bid that will close on May 31.
Sources at SBI indicate that Gopinath has agreed to participate in the auction. CNBC-TV18 was unable to contact Gopinath for his comments.