Indian Bank has declared Saravana Stores (Gold Palace), a non-performing asset account with outstanding dues of ₹230.74 crore, as “fraud” and reported it to the Reserve Bank of India, the bank informed the stock exchanges.
The Chennai-headquartered Indian Bank has already made a provision of ₹115.32 crore against the account.
In March, Indian Bank had issued a sale notice of two immovable properties belonging to Saravana Stores (Gold Palace) in T Nagar, a commercial hub of Chennai, to recover dues of ₹288 crore from its partners, guarantors and title holders.
Formed in 2006, Saravana Stores (Gold Palace) is engaged in the retailing of jewellery and textiles, among others, in Chennai.