The Export-Import Bank of India (Exim Bank) has taken possession of a property of Latha Rajinikanth, wife of Tamil superstar Rajinikanth, in a loan default of Mediaone Global Entertainment, where she stood as a guarantor.
In a notice published in a leading newspaper, Exim Bank said it had issued a demand notice calling upon Latha Rajinikanth, the guarantor for the financial assistance granted to Mediaone Global Entertainment, to repay over Rs 22.21 crore that was due in July 2014.
With the amount and interest not having been paid, the bank issued a notice to the borrower and to the public, in general, that that the property has been taken into possession by the bank. The property, situated in Tamil Nadu at Kanchipuram district, Sriperumbadur taluk, is estimated to be around 2.13 acre. Production house Media One Global Entertainment had produced ‘Kochadaiiyaan’, directed by Soundarya Rajinikanth starring Rajinikanth and Deepika Padukone in an animated avatar.
“This amount is due as on July 17, 2014, together with further interest and liquidated damages as per contractual rates and other expenses/costs thereon with effect from July 18, 2014, till payment within 60 days from the date of receipt of the said notice. The borrower, in particular, and the public, in general, are hereby cautioned not to deal with the property/asset and any dealings with the property/asset will be subject to charges of Exim Bank for the amount outstanding as per its security documents, with further interest, costs, expenses and charges thereon with payment,” the possession notice further said.
Mediaone Global Entertainment, engaged in the film business of production, distribution and exhibition for the last 10 years, meanwhile, said in a statement that it had borrowed Rs 20 crore from Exim Bank and has its own capacity and business to repay the loan.
It said the company was in the process of clearing the loan on or before Mach 31, 2015, and had various discussions with officials of Exim Bank in December 2014 to settle the matter.
“The act of Exim Bank to call upon the guarantors Latha Rajinikanth and Devender CR to repay the loan, when the principal borrower is making arrangements to repay, is not warranted,” the statement said.