Fraud-hit ICICI Bank is sprucing up efforts to attach properties of Mehul Choksi-owned Gitanjali Gems in a bid to recover multiple loans amounting to over Rs 800 crore
Fraud-hit ICICI Bank is sprucing up efforts to attach properties of Mehul Choksi-owned Gitanjali Gems in a bid to recover multiple loans amounting to over Rs 800 crore.
In its latest attempt, the bank has sought to attach assets belonging to the group, including the brands Gili, Sangini and Asmi owned by Gili India and Nakshatra Brands, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, reports The Times of India.
The private bank has sought to attach these properties, in addition to the real estate assets including land at Panvel, SEZ properties at Nashik and Hyderabad as well as offices at Bandra Kurla Complex and Seepz SEZ.
The Sarfaesi Act is a legislation that helps banks and other financial institutions attach and auction residential or commercial properties of defaulters and their guarantors to recover loans. The law requires lenders to give a 60-day notice before attaching the property.
The move of ICICI Bank is being seen as a test case in brand valuation after Kingfisher airlines by bankers. In Kingfisher’s case, bidders have not shown interest even at a tenth of what the airline brand was valued at the time of loan disbursement.As per the claim of Gitanjali Gems, the value of its brands Gili, Nakshatra, D’damas and Asmi was altogether estimated at Rs 1,500 crore by UK-based Brand Finance in 2009.