HDFC Bank issues recovery notice to royal family of Rajkot

Jun 05, 2015, 06:29 IST | PTI

Ahmedabad/Rajkot: HDFC Bank today issued a recovery notice to the scion of the erstwhile royal state of Rajkot -- businessman Mandhatasinh Jadeja and his father and former state minister Manoharsinh Jadeja, for failing to pay an outstanding loan of Rs 4.61 crore. The notice was issued in a local newspaper of Rajkot today by HDFC Bank's Bodakdev branch in Ahmedabad.

As per the recovery notice, Jadeja, his father, who was a finance minister in the earlier Congress-led Gujarat government, and four of their companies have not paid an outstanding loan of Rs 4.61 crore even after repeated reminders by the HDFC Bank.

"Thus, since you have defaulted to pay the loan, we have put your loan account as a 'Non Performing Asset' (NPA) as per Reserve Bank of India's directions," the notice stated. The notice stated that if they failed to pay the outstanding loan amount of Rs 4.61 crore within 60 days, the bank would begin the procedure to forfeit the property against which the loans were given.

These properties, as enlisted in the notice, include two open plots and several commercial properties as well as shops in Rajkot.

The HCFC Bank notice has barred the royals from selling or transferring these lands to others until the matter is resolved.

The notice has been issued to six different parties, including Jadeja, his father Manoharsinh, who are both  residents of the Ranjit Vilas Palace in Rajkot, as well as four of their companies including Lakhajiraj Developers, Neo Comfort Products, Raj Lube Pvt Ltd and Trident Developers. The royal family could not be reached for their comments despite repeated attempts.

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