A Public Sector Bank Friday issued notice for sale of immovable property mortgaged as surety by DMDK founder Vijayakant and his spouse for an engineering college run by his family in Kancheepuram district.
Indian Overseas Bank issued "sale notice of immovable property" in connection with an outstanding debt of over Rs five crore concerning the Andal Alagar Engineering College in Mamandur.
The actor-turned-politician's wife, Premalatha, said they would face the matter legally, even as she claimed that engineering colleges in the state were running in debt.
The college is run by Shri Andal Alagar Educational Trust.
The bank issued the e-auction notice of immovable property for "recovery" of a little over Rs 5.52 crore from the guarantors, Vijayakant and Premalatha, "with further interest costs due to the IOB."
The property will be sold "as is where," "as is what," and "whatever there is" on July 26, 2019, the notice read.
Responding to the notice, Premalatha said it was "not a big issue."
"This is the state of engineering colleges in Tamil Nadu as all of them are running in debt. Ours is a 20 year-old college and we had taken the loan for the development of the institution," she told reporters.
The DMDK Treasurer said they had had been repaying the dues and Rs five crore was yet to be paid.
They had sought time since admission was on, "but they took action," she said, adding, "we will find a solution by taking legal recourse."
She said "honest people" would face such challenges but assured they would be overcome.
"Captain (as Vijayakant is addressed) started the college with a service motive and is being done with the same intention eventoday. We are running it from funds from other sources, as we are unable to manage it from the institution's revenue," she added.
Disclaimer: No Business Standard Journalist was involved in creation of this content
