Syndicate to sell GVK asset to recover dues

The lender has decided to invoke the Sarfaesi Act to recover the Rs 175-cr loan

Syndicate Bank has, in a major embarrassment to the debt-laden GVK Group, put the 2,500-acre GVK Perambalur SEZ Pvt Ltd in Tamil Nadu for sale through e-auction.

It has done so by invoking the stringent Sarfaesi Act which enables lenders to put the collateral of defaulting companies for auction. The government-owned lender is owed Rs 175 crore by the company.

This is the second time the bank's corporate finance branch in this city has issued a notice for e-auction of the 2,500 acres of SEZ land. No bidders had responded to the first auction notice, dated January 6. The fresh e-auction is