Rajkot royal family dragged to court for loan default

Gruh Finance filed a case against the royal family scion in a Rajkot court on Tuesday after two bank cheques that the royal had given to the financing firm bounced last month.

By: Express News Service | Rajkot | Published:July 22, 2015 4:46 pm

Weeks after he was declared defaulter by HDFC bank, scion of Rajkot royal family, Mandhatasinh Jadeja has been dragged to the court by Gruh Finance Limited over recovery of loan dues.

Gruh Finance filed a case against Jadeja in a Rajkot court on Tuesday after two bank cheques that the royal had given to the financing firm bounced last month. Senior officials of Gruh Finance said that Jadeja had availed of Rs 2.5 crore loan by mortgaging a Rs 22 crore worth flat in Malabar Hill in Mumbai in year 2008. He further availed Rs 5 crore loan by submitting the same Malabar Hill flat as security in 2012.

Officials of Gruh Finance further said that till year 2013, Jadeja, who is also a director of Tourism Corporation of Gujarat Limited, had been paying his EMIs (equated monthly installments) each worth Rs 12 lakh regularly. But he started defaulting since then and did not pay a single EMI in financial year 2014-15.

“Therefore, we served him a legal notice in March this year. In reply, he sent us three cheques collectively worth Rs 1.25 crore. Two of them were worth Rs 30 lakh each while the third cheque was worth Rs 65 lakh. We deposited the first cheque on June 15 and it was cleared. However, the second cheque deposited on June 20 bounced. The third cheque worth Rs 65 lakh that we deposited on June 30 also bounced. So after statuary period of 15 days, we moved the court on Tuesday for the Rs 30 lakh cheque that bounced,” a senior officer of Gruh Finance told The Indian Express on condition of anonymity.

Gruh Finance, which is subsidiary of HDFC bank, has filed the case in Rajkot district court under Section 138 of Negotiable Instruments Act for dishonouring cheque.

The court case against Jadeja comes weeks after he was declared defaulter by HDFC bank last month after failing to repay Rs 4.46 crore loan which he had availed from an HDFC branch in Ahmedabad.

Gruh Finance officers said that Jadeja owed them Rs 5.73 crore towards loan outstanding and Rs 1.10 crore towards EMI outstanding for the last one year.

Incidentally, Jadeja had arranged opulent ceremonies during marriage of his son in January this year and sources confirmed the scion, who is first in line to inherit the crown was in cash crunch since.

The royal is likely to face more cases as Gruh Finance officials said they were preparing to file another case in connection with the Rs 65 lakh cheque which bounced.

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