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Gokaldas Images land in Devanahalli up for grabs


Gokaldas Images land in Devanahalli up for grabs

Last updated: June 17 2012
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  • Gokaldas Images land in Devanahalli up for grabs

    Gokaldas Images Infrastructure’s land parcel in Devanahalli is up for grabs. Canara Bank has taken possession of 26 acres belonging to the Bangalore-based company under the Securitisation and Reconstruction Financial Assets and Enforcement of Security Interest Act (Sarfaesi) 2002.

    The property belonged to SIIC Package, a 100% subsidary of Gokaldas Images Infrasturucture. The infra division has state of the art garment manufacturing units for different products. Gokaldas Images is an integrated apparel manufacturer with a turnover of over $120 million.

    It has 15 factories and employs over 11,000 people. The company’s land in Kasaba hobli in Devanahalli is available for outright sale and the same will be sold through a public auction next month. The Sarfaesi Act empowers banks and financial institutions to recover their dues without the intervention of the court.

    The firm has a liability of Rs 59 crore as of June 11, the bank said in its auction notice. The bank will recover the outstanding amount along with interest and other incidental charges. It has fixed a reserve price of Rs 81.61 crore for the bid with an earnest money deposit of 10% of the reserve price.

    When TOI contacted Jagdish Hinduja, managing director of Gokaldas Images, he declined to comment on the company’s liabilities and the land auction.

    Real estate consultants said that the 26-acre land parcel has been available for purchase for quite some time. But the company couldn’t close the deal as the asking price was steep, sources said. Growing demand for residential projects has pushed up land prices in Devanahalli by 30% in the last two years.

    “Land in and around the airport is quoted between Rs 6-7 crore an acre. In fact, the government has given Rs 1,147 per sft as compensation for those who surrendered a portion of their land for road widening,” said Ram Chandnani, deputy MD-South India at real estate consultancy CB Richard Ellis.
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