Canara to attach Kunwar Ajay Foods properties

Canara Bank has issued a notice to attach the properties of Kunvar Ajay Foods Private Ltd owing to the company's failure to repay dues worth Rs 4.38 crore.

The bank is expected to attach 91 shops of the group in Surat.

Suresh Agrawal and his wife Anju Agrawal, directors of Kunvar Ajay Foods Private, had taken a loan from a Surat branch of Canara Bank a few years back. The guarantors for the loan were Kunvar Ajay Designer Sarees Private, Poonam Industries and Ashirwad Corporation, which incidentally belong to the same group.

The bank had issued a notice to Kunvar Ajay Foods on August 20, which directed the company to repay the amount in 60 days.

However, as Kunvar Ajay Foods failed to repay the amount, the bank has initiated measures to take possession of various company properties.

In the notice Canara Bank has cautioned Kunvar Ajay Foods and the public to not deal in these properties.

The possession notice comes as another blow to Agrawal, as the city police have initiated proceedings to declare him as an absconder in connection with a case of fraud lodged against him by a few textile traders.

Agrawal founded Kunvar Ajay Sarees in the 90s, which became a successful textile brand with an annual turnover of over Rs 100 crore.

After this, Agrawal launched Friendly Wash Detergent and Dandi Salt in 2000. But these ventures resulted in heavy losses to Agrawal.

As the pressure of financiers and creditors increased, Agrawal disappeared in April earlier this year, and has remained non-traceable since.