News Reports on VGN- VGN is not liable in this regard

FOR PUBLIC INFORMATION

REGARDING NEWS REPORTS ON VGN FAIRMONT

This news about VGN Fairmont property which is baseless. We would strongly like to clarify the facts of the case.
The property initially belonged to HTL. State Bank of India (SBI) had given loan to HTL. HTL became sick company and couldn’t repay to SBI. So SBI decided to auction the property under SARFAESI Act. In the year 2007, the reserve price fixed by SBI was Rs. 209.54 Crores. Between 2007 and 2012, paper ads have been given by SBI in all leading dailies in all major cities across the Country. There were no bidders for the property for five years.

In 2012 reserve price for the land was fixed as Rs. 250 Crores by SBI and Auctions were conducted and there were no bidders and VGN was the only successful bidder. The entire process was done as per the SARFAESI Act and VGN bought the property for Rs.272 Crores which is above the quoted reserve price. SBI has issued a sales certificate in favour of VGN Developers Pvt. Ltd. Almost all the leading banks in the country have approved the project funding.
The CBI, which is the prime investigation agency itself, has informed the court that the loss to government was only Rs.53.50 Crores because SBl had given an interest waiver to HTL. VGN is not liable in this regard.