Banks threaten to sell ex-CM Manohar Joshi's education trust for default

State-run Bank of Maharashtra has taken possession of Rs 68 crore worth of immovable properties belonging to the Kohinoor Education Trust, which was founded and being run by the family of former state chief minister and senior Shiv Sena leader Manohar Joshi.

The Bank of Maharashtra, acting on behalf of other lenders--State Bank of India and Bank of India--took possession of the properties situated at Kurla and Khandala, near Mumbai, under the Securitization and Reconstruction of Financial Asset and Enforcement of Security Interest Act (Sarfaesi), according to a public notice Monday.

The lender has asked the borrower--Kohinoor Education Trust, its personal guarantors, Unmesh Manohar Joshi, Madhavi Unmesh Joshi and Anagha M Joshi and corportate guarantors-- Hotel Airport Kohinoor and Kohinoor Planet Construction, to repay the amount within 60 days.

The Kohinoor Education Trust owes nearly Rs 16 crore to Bank of Maharashtra, Rs 38.63 crore to State Bank of India and Rs 13.18 crore to Bank of India.

"Since the borrowers having failed to repay the amount, notice is hereby issued to the borrowers/guarantors that the banks have taken possession of the properties," reads the notice.

The properties include a land parcel in Kurla in central Mumbai, and in the nearby Khandala area. The lenders also took possession of two buildings of the trust situated in Khandala, according to the notice.