The director's family was reportedly given a notice for an unpaid loan of Rs 1.36 crore by UCO bank.

K Balachanders home and office to be auctioned Production house denies rumours
news Cinema Tuesday, February 13, 2018 - 09:36

Veteran director K Balachander’s Kavithalayaa Productions’ office along with his two flats in Mylapore are said to be under the threat of being auctioned off, due to non-repayment of a loan taken from UCO bank.

The director's family was given a notice for an unpaid loan of Rs 1.36 crore by UCO bank, according to a TOI report.

However, denying allegations of a sale, spokespersons from Kavithalayaa clarified that the properties were pledged to avail a loan. They are negotiating with the bank currently.

Explaining that the auctioning of director’s properties was only a business decision, a press release from Kavithalayaa productions read, “KB’s house and office have not been pledged. Like any other business, our production house too took a loan. A substantial amount has been repaid and a process of negotiation for a one-time settlement is underway for the rest. Before these negotiations could be concluded, the bank in accordance with their procedures, issued a notice of auction in one of the dailies, which in turn led to these rumours."

As part of a larger notice put out by UCO bank’s Asset Management Branch, the two houses were also said to have been put up for auction. Located on the second floor of a commercial complex on Lady Desika Road, Mylapore, the two flats are 1700 sq ft and 2400 sq ft in built up area.

TOI reports that the smaller flat is owned by KB’s daughter Pushpa and its upset price (lowest acceptable selling price of a property in an auction) has been set at Rs. 87 lakh by the bank. The other house, owned by KB’s wife Rajam Balachander, will go at a minimum price of Rs 119 lakh, according to the TOI report. Both Rajam and Pushpa were involved in the operations of Kavithalayaa productions, the report further stated.

 

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