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Citing Rs 103-crore loan default, banks take over Hotel Park Plaza in Chandigarh

AMID HIGH drama which continued for nearly three hours, a consortium of banks and financial institutions, led by Punjab National Bank (PNB), on Friday took possession of Hotel Park Plaza in Sector 17 in the presence of around 300 guests.

The hotel owes over Rs 103 crore — Rs 33.49 crore to PNB, Rs 11.61 crore to United Bank of India (UBI) and Rs 58.02 crore to Asset Reconstruction Company Ltd (ARCIL). UT district magistrate Ajit Balaji Joshi on August 3 had passed an order for taking physical possession of the hotel. The hotel management was served a three-day notice by the banks before taking possession.

Representatives of all the three financial institutions along with the police arrived on the site around 10.30 am and started putting up banners and notices on the boundary walls and gates of the hotel stating that the property had been taken over by the banks.