Kotak Mahindra Bank has issued a possession notice to Deccan Chronicle Holdings Ltd under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002.
This is to recover Rs50.25 crore of loan repayments outstanding as of August 16, 2012.
Kotak Bank had advanced about Rs100 crore to Deccan.
It issued a demand notice on August 16, calling back the entire liability from the company within 60 days of the issuance of the notice.
However, with Deccan not paying the monies, Kotak Bank has proceeded under the provisions of the Sarfaesi Act, demanding payment within the next 30 days.
According to the notice pasted at the company’s facilities, the bank has carried out symbolic possession of about 9,892.6 sq yards of land located at Kondapur on the outskirts of Hyderabad.
Sources said Deccan has a facility at Kondapur, which is primarily used for warehousing. Though there were reports that the media house operates its printing machines at the address, this could not be ascertained independently.
A possession notice is not a conclusive action, said a source.
“There is still wiggle room for Deccan. It can settle with the bank out of court by offering an amicable repayment schedule or challenge the notice at an appropriate forum including the Debts Recovery Tribunal.”