Seth in fresh trouble

6 April 2012

Bank asks Lakshman’s NGO to clear dues within 60 days
biswabrata goswami
HALDIA, 6 APRIL: Lakshman Seth, who is now in judicial custody after being arrested by the Criminal Investigation Department in connection with the Nandigram violence, is now in fresh trouble after his non-governmental organisation (NGO) ~ ICARE ~ received a notice by Syndicate Bank asking it to repay its Rs 10.16 crore debt within two months.
The bank's branch at Rashbehari Avenue, Kolkata, had extended ICARE a credit facility of Rs 22.40 crore after the NGO gave away 61.60 acres in Haldia's Hateberia Mouja as mortgage. The land was given in two installments ~ 24.62 acres initially and 36.98 later.
Since its inception, the NGO of the former member of Parliament from Tamluk and CPI-M party strongman in Haldia built several educational institutions ~ Haldia Institute of Technology, Haldia Law College, Haldia Maritime Institute and 16 other educational institutions ~ on the two plots. However, ICARE defaulted in repaying some installments in the recent past.
“As you have defaulted in repayment of your liabilities, we have classified your accounts as non-performing assets as on 30.12.2011, in accordance with the directions or guidelines issued by the Reserve Bank of India," said the bank notice.
It also said: “We hereby call upon all of you to discharge in full your liabilities to us within a period of 60 days from the date of this notice, failing which we will be exercising the powers under section 13 of the Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest Act against the secured asset mentioned above. The powers available to us under section 13 of the Act, inter alia includes: (i) power to take possession of the secured assets of the borrower including the rights of transfer by way of lease, assignment or sale for realising secured assets and (ii) take over the management of the business, including the right to transfer by way of lease, assignment or sale and realise the secured debit, and any transfer of secured asset by us shall vest in the transferee all rights in relation to the secured asset transferred as if the transfer had been made by you”.
Mr Anjan Sen, chief executive of ICARE, said: “This type of notice to an organisation is nothing new. We have paid some installments to the bank, but could not repay a few recently. We have reached this situation as a good number of students have dropped from courses and, thereby, costs have increased. We have written to the bank urging it to hold a meeting with us because we are capable of repaying the debt.” However, the notice has triggered sensation among the students of various ICARE-run institutions. Some have alleged that they have been victimised by  the ICARE authorities as no campus interview was held this year.