SBI withdraws auction notice issued to SCT

 SBI, on May 13, 2010, had issued an auction notice (seeking to sell the land on which the college functions) in one of the Kannada dailies, which was first reported by Deccan Herald, when the management had responded saying it had appealed before the Debt Recovery Tribunal questioning the sanctity of the loan.

According to documents in possession with Deccan Herald now, the bank told the Tribunal in writing that the auction notice has become infructuous and has issued a notice conveying the same in one of the English and Kannada dailies here (dated May 19).

Relief

This move comes as a relief to the students whose whose fates being in the hands of authorities in case of closure.

It is further learnt that the bank had skipped earlier hearings at the tribunal dated March 31 and April 15, and continued issuing the demand and auction notices. This the management claims was not in the right spirit.  

The management also said that the bank’s move adds strength to the Trust’s contention that the loan has no sanctity. The next hearing for arguments is scheduled on June 15, 2010.

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