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SBI takes over Nasik hotel under NPA ordinance

In the first "seizure" under the securitisation ordinance for recoveries of non-performing assets, State Bank of India has taken possession of a hotel in Nasik.

"The running hotel has been seized by us under the ordinance two days ago after the expiry of the 60 day notice period," SBI officials told PTI in Mumbai on Tuesday.

The promoters of 'The Plaza' had failed to pay back outstanding amount to the tune of Rs 11 crore (Rs 110 million) with interest and the bank had no other option but to vacate and seal the premises, the officials said.

The bank would shortly be issuing a notice of sale for the 66-room hotel situated on Nasik-Mumbai Highway and owned by Soni Tourism Pvt Ltd. SBI would then invite bids from interested parties.

"Our priority will be to dispose of (the property) as early as possible," officials said.

They said some of the defaulters were now coming forward to repay their loans and the bank was confident of recovering substantial sums through the enforcement of the ordinance.

SBI's Mumbai circle has issued notices in 38 cases with outstanding dues of Rs 979 crore (Rs 9.79 billion) and if payments were not forthcoming within the stipulated period of 60 days, it would take possession of the assets charged to the bank for recovery of dues, they added.

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