Hyderabad: Justice Nagesh Bheemapaka of the Telangana High Court on Thursday refused to interfere presently with the resumption of 100 acres of land at Fabcity, SEZ, Raveriya Village of Maheswaram Mandal at the instance of State Bank of India (SBI).
The judge was livid at the manner in which the SBI had granted a loan on the basis of a lease document. The judge wondered how such a huge loan could be granted against a wafer insecurity. “What action have you taken against the office who sanctioned the loan? Why are you fighting shy of ordering a CBI investigation?” Justice Bheemapaka asked.
The centre of the controversy is that about 100 acres of land in Fabcity, SEZ, was leased to M/s Sem India Fab Pvt Ltd by the state government. According to the state government since the lessee failed to kick start the project and committed multiple defaults the land was resumed.
It would therefore contend that the SBI could not have accepted a mortgage and resultantly cannot recover any amount by sale of the property. Earlier, the resumption was unsuccessfully challenged before the State High Court.
At the instance of SBI, the matter reached the Supreme Court. The Supreme Court refused to interfere with the orders of the High Court. In the said factual background, the SBI filed the present petition seeking a declaration that the resumption proceedings dated August 3, 2023, along with G.O. Ms. No. 9 dated February 9, 2010, resuming Ac.100.00 guntas of land at Fabcity SEZ, covered by the lease deed of 2007, as arbitrary and illegal.
The petitioner also sought a direction restraining the authorities from interfering with recovery proceedings initiated against M/s Sem India Fab Pvt Ltd under the SARFAESI Act. Justice Bheemapaka said that such grant of loans was at the cost of the wealth of the nation. “You are eating into what is legitimately the wealth of the next generation.”
He said and required SBI to first come clean on why it had not taken in-house corrective action before he hear the matter on merits. Senior Counsel Narender Reddy appearing for the SBI argued that the loan amount was only 169 crores and the consolidated amount including interest stood at over 640 crores. He pointed out that at the time when the loan was granted and properties in question were mortgaged, no objection certificates were granted by the government and that the SBI is entitled to recover the same from M/s Sem India Fab Pvt Ltd by bringing the property into action.
The matter is now adjourned to Thursday next for the state government also to file its responses.
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