Madhavpura recovers Rs 3.65 cr from auction

The defunct Madhavpura Mercantile Co-operative Bank Limited (MMCB) on Friday conducted another round of auctions of properties owned by defaulters has recovered Rs 3.65 crore. The auction was the sixth auction by the bank to recover its long-pending dues.

The bank has already received Rs 400 crore from the Deposit Insurance and Credit Guarantee Corporation. However, the bank still carries a burden of Rs 1,050 crore comprising bad loans Rs 250 crore of individual depositors and Rs 800 crore of 268 co-operative banks of Gujarat. Most of the banks investing in MMCB have gone bust.

A statement issued by the chairman of MMCB Jayram Patel said, "The bank had organised the auction of the properties, with permission of their owners and under the Securitisation Act, through Ashwin and Company. We will be able to recover Rs 3.65 crore from the sale of five of the proposed properties within a month".

The properties of Jayesh Bhimani Group, Anku Traders, F S Engineers, M Chimanlal and Co and Kirit Shah Group have been sold during the auction. The bank have been able to recover Rs 2.93 crore for Kirit Shah Group against the valuation of Rs 1.86 crore, one of the biggest defaulters of the bank with outstanding of Rs 76,70,47,058.

One of the properties owned by another high-profile defaulter, Jayesh Bhimani Group has also been sold for Rs 7.20 crore against the valuation of Rs 8 crore. Also, none of the properties of Ketan Parekh was auctioned owing to legal problems.