Business Tourism

Palm Beach Island Resort Accuses State Bank of India of Predatory Foreclosure

Palm Beach Island Resort & Spa reveals that the resort has been in negotiations with the State Bank of India (Maldives) to come to a settlement in order to avoid foreclosure of the resort, and have been able to come to an acceptable agreement with the bank out of court against which the Resort has placed deposit and consideration.

However, according to the statement, the Bank has chosen to go back on their word and are now invested in imposing “unfair and unlawful amounts’ atop” applicable charges in an apparent effort to frustrate attempts by the mortgagor to settle accounts and to effect an unlawful agenda in favour of a third party, with questionable processes, amid an ongoing global pandemic.

“As we genuinely feel that the Bank has demonstrated malice, by moving against letting the mortgagor settle all dues, we cannot help but be further convinced given the circumstances and facts at hand, that elements of impropriety, corruption and secret profit are likely at play in an attempt to collect unlimited interest many folds multiplied.”

The resort adds that the foreclosure process followed by the bank is based on a decidedly “secret” valuation that the Bank has so far refused to disclose to the mortgagor, concealing and devastate the fair value of the property, a matter that is in fact, prohibited by Indian laws and judicial precedents.

“It must also be noted that, in the end, the Bank only stands to gain and has been continually gaining profits from these same business practices. The bank acts as if there are no regulations or policies on foreclosures or its applicable processes,” reads the statement.

Full details are available at the link below:

Source URL: Corporate Maldives

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