RAJKOT, 30 September (Hindustan Times) - In a significant financial move, Rajmoti Oil Mill, owned by Rajkot's prominent industrialist and former Rajkot Chamber of Commerce chief, Sameer Shah, was sealed on Saturday. The action comes in light of an outstanding loan of Rs 140 crore owed to four nationalized banks. This operation, supervised by Rajkot Collector Prabhav Joshi, was executed in collaboration with bank officials, police, and Union Bank employees.
As per news agency report, the sealing has caused a ripple effect across the Rajkot business community, raising concerns about the implications of such actions. The four banks pursuing the outstanding amount include Union Bank, Bank of India, Indian Bank, and Bank of Baroda.
Bank representatives reveal that Sameer Shah had secured a loan of Rs 75 crore against a mortgage on his property. Allegedly, the repayments, inclusive of installments and interest, have remained pending for the past seven years, despite repeated notices from the bank.
In response to the bank's actions, Shah has cited the economic slowdown caused by the Corona pandemic as a significant hurdle to his business operations. He claims the banks have remained uncooperative, rejecting multiple settlement offers presented over two and a half years without providing a counteroffer. Shah further added that he's consistently engaged with the lead bank, Union Bank, to find a resolution. Emphasizing the mill's operational status, Shah highlighted its 150-strong workforce, cautioning that the mill's closure would jeopardize their livelihoods.
