Delhi HC directs to attach B K Modi’s property for not repaying loan
29.5.2012 (UNI) The Delhi High Court has directed to attach a prime property at Prithviraj Road of businessman B K Modi, director of Modi Rubber for defaulting to pay a loan of Rs five crore taken from Morgan Securities & Credit in 2001.
A bench comprising Justices Ravindra Bhat and S P Garg on May 23 directed to attach Modi's bunglow at Prithviraj Road which has a market value of Rs 150 crore and start the execution of the property as he failed to repay the loan to the private lender.
Morgan Securities & Credit, which gave the loan of Rs five crore in the form of inter-corporate deposit, rose to Rs 18 crore, including an interest component of Rs 13 crore.
B K Modi and his brother V K Modi had stood guarantors for the loan taken by the company and they were jointly and severally liable to repay the amount. Modi has since resigned from the board of the tyre-maker and runs the telecom to entertainment group Spice Global.
The court considered Modi's three immovable properties - one in Panchkula, near Chandigarh, and two in Delhi, including one at Amrita Shergill Marg.
The Court refused to hear the plea of Modi's lawyer, that the property on Prithviraj Road was his "main dwelling house", and said since Modi was an NRI who spent most of his time in Singapore, hence the property could be attached to repay the loan.
The bungalow, built on about an acre of land across the road from the Taj Mansingh Hotel in central Delhi is worth Rs 150 crore today, is a prime property in the Lutyens' Bungalow Zone.
Modi had purchased the house in 2010. UNI