Centaur deal: Kerkar moves HC against banks

Vijaya Bank and Indian Bank had lent Rs 24 crore and Rs 11 crore respectively to Kerkar to buy the property when the government put it on the block in 2002. Kerkar had raised total loans of Rs 129 crore from banks to finance the acquisition.

Vijaya and Indian Bank moved the DRT when they learnt through newspaper reports that Kerkar was selling off the hotel. The court has now asked the DRT to hear Kerkar’s argument as DRT had passed an order ex-parte (without the presence of the other party).

Kerkar’s main contention is that he cannot raise funds to repay the loans till he signs a deal to redevelop the property. ‘‘I am ready to repay every penny of the banks, but for that I have to raise funds by re-developing the properties with my partners,’’ Kerkar told The Indian Express on Wednesday.

A clutch of builders led by Conwood, Oberoi Constructions and Nirmal Lifestyle have signed a MoU with Kerkar to buy the property for Rs 370 crore. It was in 2002 that Kerkar bought the property for Rs 153 crore when it was disinvested.

Under pressure from the Left, the government has now ordered a probe into the sale of both Centaur Juhu and Mumbai airport properties although the terms of the enquiry have not been set out.

As the property was mortgaged to the banks by Kelkar when he raised loans, they have objected to Tulip’s plans to sell off the property to other parties.