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Updated on: Tuesday, November 02, 2021, 11:56 AM IST

SBI issues clarification on Pratip Chaudhuri case; hotel project in Jaisalmer, Rajasthan financed by bank

Pratip Chaudhuri, former chairman of SBI, and seven others were arrested after the Chief Judicial Magistrate in Jaisalmer issued an arrest warrant | File pic

Pratip Chaudhuri, former chairman of SBI, and seven others were arrested after the Chief Judicial Magistrate in Jaisalmer issued an arrest warrant | File pic

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‘Garh Rajwada’ was a hotel project in Jaisalmer, financed by the Bank in 2007. The project remained incomplete for over 3 years and the key promoter passed away in April 2010. The account slipped into NPA in June 2010. Various steps taken by the Bank for completion of the project as well as recovery of Bank’s dues didn’t yield desired results. Hence as part of Bank’s recovery efforts, the dues were assigned to an ARC for recovery in March 2014.

This sale to ARC by the Bank was done through a laid down process as per the policy of the Bank. We further understand that the borrower was subjected to IBC process by the said ARC and the asset has been acquired by an NBFC in Dec. 2017, again through due process under the orders of NCLT, Delhi.

As recovery efforts failed, approvals for sale to ARC were taken in Jan 2014, the assignment to ARC was completed in March 2014. It transpires now that the borrower had initially filed an FIR with the State Police against the sale of asset to ARC. Aggrieved against the negative closure report filed by Police authorities, the borrower had filed a ‘Protest petition’ before the Hon’ble CJM Court. Incidentally SBI was not made a party to this case.

All the directors of that ARC including Chaudhuri, who joined their Board in October 2014, have been named in the said case. Incidentally, Chaudhuri retired from the Bank’s service in September 2013.

It appears from the copies of the proceedings now accessed by us that there has been some factual inaccuracies in the complainant's version submitted to the Hon’ble Court.

In as much as SBI was not a party to this case, there was no occasion for the views of SBI being heard as part of this proceedings.

SBI would like to reiterate that all due process were followed while making the said sale to ARC.

The Bank has already offered its cooperation to the Law Enforcement and Judicial authorities and will provide further information, if any that may be called for from their side.

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Published on: Monday, November 01, 2021, 08:09 PM IST
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