The Bank of Baroda is planning to urge Karnataka High Court to prohibit sale of assets, even those not pledged to the bank, by billionaire businessman BR Shetty.
The public-sector bank had earlier got a partial relief from a sessions court in Bengaluru, which restrained Shetty and his wife from selling or transferring only the 16 properties used as collateral for loans of ₹1,912 crore from Bank of Baroda.
According to a source, the bank has moved court only as a proactive step, to ensure that its right to recovery is protected, in case the borrower defaults later.
Bank of Baroda’s moves come at a time when bad loans in India are expected to see a significant surge, due to the Covid-19-led lockdown and the subsequent slow-down in economic activities of borrowers.
