Debt recovery panel asks Ibrahim to clear dues worth Rs 72 lakh

The New Bank moved the City Civil Court in the same year following which the latter issued an order on March 12, 1991 directing Ibrahim and others to repay Rs 20,42,511 within six months. Including the interest, the sum Ibrahim owed to the Bank then, totalled Rs 36,10,313.15.

When these directions fell on deaf ears, the case was transferred to the Debt Recovery Tribunal. The DRT issued an order on June 19, 1998 to recover Rs 72,78,922, failing which the bank could attach the debtors’ Cambridge Road property measuring 10,000 sq ft, Sagaipura property measuring 5,500 sq ftand a house of 400 sq mts in Mangalore.

Ibrahim, by then the Union Civil Aviation Minister, is understood to have written a letter pleading that the bank waive the interest on the sum. In the letter, he reportedly stated that the reason for which the loan was borrowed — business — had not taken off. His pre-occupation with social work (read politics) was the reason for his inability to concentrate on business.

The plea was rejected by the bank’s board of directors on the grounds that the property pledged against the loan was worth much more than the loan amount. This was in accordance with rules laid down by the Reserve Bank of India.

Bank officials believe that a logical end to the episode would be seizure of the pledged property. Ibrahim was not available for comment.