Indian Bank to auction two properties owned by Saravana Stores Gold Palace

Public sector lender Indian Bank has put on sale two immovable properties of Saravana Stores (Gold Palace) at T Nagar in Chennai.

The bank has issued a notice of sale to recover Rs 288 crore from the jewellery represented by its partners, guarantors and title holders.

While the property located on Usman Road measures 4,800 sq ft and has a reserve price of Rs 124 crore,  the second property located on Ranganathan Street has a reserve price of Rs 46 crore. Both are located in T Nagar, one of the country's leading commercial hubs.

In January 2020, Karur Vysya Bank said that the outstanding stood at Rs 162.8 crore.

The private sector lender issued a possession notice in which it stated that the borrowers included Saravana Stores Gold Palace Ltd and its guarantors, including Y Pallaku Durai, son of Yogarathinam, Durai's wife P Sujatha, and son Y P Shiravan.

In the notice, the bank asked the title holder of Saravana Stores Gold Palace Ltd, Pallaku Durai, to repay the amount mentioned in the notice. After the borrower failed to repay the amount, the bank issued a notice to take possession of the properties.