MMCB attaches defaulters' properties

Seizure of property of the defaulters, who have been issued notices 60 days ago, has been initiated by the bank.

MMCB has so far issued notices to 82 defaulters for recovery of a total Rs 142 crore. MMCB chairman Jairambhai Patel has said the attachment of properties will help recover just up to 40 per cent of the total dues.

"There are a couple of constraints here. In the first place, only those properties that had been mortgaged to us can be seized. And then, we cannot attach properties such as factories, as the question of electricity bills, salaries of employees and running the factories arises," Patel said.

In the current drive, MMCB has so far attached 12 to 13 properties, where the defaulters owed MMCB loans worth Rs 160 crore.

Patel said the process of evaluating these properties is progressing.

"But I think we will be in a position to recover just about 40 per cent of the total dues through this drive," Patel said.

Bank officials said properties seized after issuing notices will be auctioned and the money collected will be deposited into the bank fund as recovery of dues.

The auction date will be announced later. Most of these properties are residential premises, shops and offices, but the value of property seized is lesser than the sum that these firms owed the bank.

The bank has attached properties worth Rs 80 lakh owned by Rameshchandra Shah and his three sons Mayur, Deepak and Bhupendra, the bank said.

Rameshchandra Shah's Shrichem Intermediaries owed MMCB Rs 4.68 crore, but the three bungalows are valued at just Rs 80 lakh.

The bank has also attached the office of the company at Shefali Centre in Paldi.

Similarly, Anku Traders, owned by Upendra Ratilal Mistry, owed MMCB Rs 1.10 crore, the bank said.

The bank has attached its shop at C G Road and attached another office in the Paldi area, taking the total amount of property seized to Rs 25 lakh.

A farmhouse owned by Sangam Glass Emporium and Sarovar Glass Museum, defaulters of Rs 12.77 crore, has also been attached.

Two bungalows owned by the promoters at Memnagar have also been attached by the bank and these will be auctioned later.

Natwarbhai Patel, another leading co-operative banker, said co-operative banks should be more vigilant.