Steps were taken to seize the property of ET Feroze, son of the leader of the Muslim League of Indian Union (IUML) AND Mohammad Basheer, MP, following the non-repayment of a bank loan of more than 200 crores.
The action was brought on the basis of a petition filed by Canara Bank and Punjab National Bank before the Kozhikode Chief Judicial Court (CJM) claiming that Mr. Feroze had not repaid Annam’s loan. Steels Pvt. Ltd in Chennai. He is the general manager of the company.
The court-appointed commission of attorneys PT Sreenarayanan Unni sent notices to Mr. Feroze and other administrators that further action would be taken if the debt was not repaid by October 21.
This follows a directive from A. Fathima Beevi, Kozhikode CJM, on a petition filed against 21 interviewees, including the CEO of the company and other directors. If the loan is not repaid, the commission has been empowered to take over fifteen mortgage loans, including a shopping complex in the city, and hand them over to the bank.
However, Mr. Feroze and others have asked for time to repay the loans. They would seize a higher court against the recovery procedures. The case involved a loan of 200 crore yen from two banks in 2013. The loan involved buying scrap metal at auction from the state-owned Kudremukh Iron Ore Company Limited.
The agreement was to repay the money within two years. The action has now been initiated on the basis of a claim filed by the banks in 2017 when the repayment was in default. The court appointed the lawyer’s commission the same day. But the acquisition was delayed as Annam Steels approached a higher court.
Meanwhile, the CJM court ordered the attorneys board to take immediate action while the case is pending.