Surat : Dawoodi Bohra Community Member Defaults on Loan worth Rs 66.74 Crore

Surat : The Dawoodi Bohra community in the diamond city of Surat is shocked after the ISARC-Canara Bank-I/2013-14 Trust has taken the unprecedented step of issuing an e-auction sale notice for the lace manufacturing unit owned by Badri Lacewala, a prominent figure in the Dawoodi Bohra samaj.

The action follows Lacewala’s default on a substantial loan amounting to Rs 66.74 crore obtained from public sector bank, under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI).

The development has stirred attention not only due to its financial implications but also because of Badri Lacewala’s stature within the Dawoodi Bohra community in Surat.

Badri Lacewala has been instrumental in managing some key affairs of the Dawoodi Bohra community in Surat and other parts of the country.

Badri Lacewala, along with partners Murtaza Ahmedbhai Lacewala and Zehra Lacewala of Burhani Lace, a partnership firm, were declared defaulters for failing to repay the loan borrowed from Canara Bank. In response, the ISARC-Canara Bank-I/2013-14 Trust has sealed Lacewala’s property in SurSEZ, located in Sachin, and issued a public e-auction notice for the auctioning process of the Burhani Lace manufacturing plant.

The trust, constituted by Canara Bank, aims to recover the machinery of the lace manufacturing plant, stock of manufactured goods, and the leased property of the SEZ. The authorized officer of ISARC, appointed for loan recovery, has initiated the auction process, valuing the property based on its current condition. Two officers, Rajeshwar Raghavan and Dharmesh Mehta, have been appointed to oversee the recovery of the outstanding debt amounting to Rs. 60.74 crore as of February 13, 2023.

Previous attempts to auction the property on January 22, 2024, faced hurdles due to insufficient creditor participation. However, ISARC – Canara Bank has set the reserve cost of the factory building at Rs. 1.34 crore and plant machinery at Rs. 13.26 lakh, totaling Rs. 1.47 crore. Given the property’s location within the SEZ, the auction will adhere to government rules applicable to such zones.