Indian Overseas Bank (IOB) has issued a notice to Deccan Chronicle under the Sarfaesi Act, to redeem a part of its lending to the company.
The bank has an exposure of Rs 75 crore to Deccan Chronicle. The Sarfaesi Act is the strict law enabling seizure and sale of a defaulter's assets.
A senior official from the bank has said the bank has issued a 60-day notice . The bank will proceed with action to attach the property , which belongs to one of the promoters and is estimated to be around Rs 40 crore.
The property belongs to one of the Promoters, said the bank official. He added, the bank has an exposure of around Rs 75 crore. "In order to redeem the balance amount, the bank has to go with a civil suit".