SC order gives respite to Charotar Bank

Court asks former MD to co-operate in sale of his property

With the Supreme Court directing Charotar Nagarik Sahakari Bank's former managing director Dipak Patel and his two brothers to co-operate with the bank liquidator in selling off Patel's properties to repay loans, chances of the bank recovering at least some part of the outstanding amount of Rs 21 crore from the brothers has brightened.

However, the liquidated bank will still not be able to recover the entire outstanding amount as the liquidator has valued the mortgaged properties of Patel and his brothers at Rs 4.75 crore, less than one-fourth of the total outstanding amount.

In all, Charotar Nagarik Sahakari Bank is yet to cover over Rs 300 crore from defaulters.

"The value of the property owned and mortgaged by the Patel brothers is not more than Rs 4.75 crore against the outstanding Rs 21 crore, according to the latest valuation done by the bank," said I P Joshi, the bank's liquidator.

Dipak Patel, who had allegedly gone underground to evade arrest, and his brothers, have been directed to co-operate with the liquidator to sell off all his mortgaged properties within 30 days from the issue date of the order.

Dipak Patel and his two brothers, Bharat Patel and Prakash Patel, approached the Supreme Court after the Gujarat High Court issued an arrest warrant after they failed to pay Rs 1 crore to the bank before January 10 this year.

The Supreme Court granted conditional bail to them and ordered each to deposit Rs 5 lakh each as guarantee money.

"We are trying to fix the best deal for the properties to recover the maximum amount from the Patel family. We will recover the rest of the amount from guarantors as properties owned by Patels will not fetch the full amount," said Joshi.

Dipak Patel had taken the loans while he was serving as the managing director of the bank. Patel was also an MP from the Anand seat in the last parliament.

"It is difficult to recover the outstandings speedily as big defaulters are taking legal steps for every small matter. But we are trying our best so as to repay to the depositors money below Rs 1 lakh," said Joshi.