Hotel Park Plaza in Sector 17 is one of the top hotels of Chandigarh but this recent incident that took place on 26th August, 2016 has somehow brought a bad name to it. The hotel was seized by Banks with the help of Chandigarh Police and over 300 people including guests who were present inside the hotel were asked to leave. The orders to seize the hotel were give by Chandigarh DC as the hotel has failed to repay the loan amount of 103 Crores.
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The officials from the bank put up banners outside the hotel announcing the possession of Hotel Park Plaza. The management and employees soon took action and closed the main gates preventing the officials to enter the hotel. A high drama was witnessed for about 30 minutes but finally police was able to disperse off the crowd and enter the hotel. The bank officials seized the property and asked the guests to leave.
A wedding exhibition was taking place at the hotel and all exhibitors were asked to pack their bags and leave the hotel premises. Even guests staying in the hotel rooms were asked to leave. Locks were put up on the 4-star property. However the seizure was opened after 3 hours and the hotel employees have been asked to work till 31st August. The High court has asked the bank officials and hotel management to operate the hotl till 31st August and further action would be taken on the next hearing.
The Loan Amount & Hotel Park Plaza
According to Indian Express the hotel owes Rs. 103 Crore to various organizations as it took a loan for the said amount way back during its construction.
Total Loan Amount = Rs 103 Crore.
Punjab National Bank = Rs 33.49 Crore.
United Bank of India (UBI) = Rs 11.61 Crore.
Asset Reconstruction Company Ltd (ARCIL) = Rs 58.02 Crore.
The possession of Hotel Park Plaza Chandigarh was taken over by a team led by Punjab National Bank and the officials seized the hotel with the help of Police. Here’s a video which was made by Times of India that will give you insights into how it actually happened.
Video of What Actually Happened
103 Crore is a whopping amount and the hotel management has not been able to repay the loan amount. After repeated requests and warnings, banks were left with no other option other than to seize the property. The current value of Hotel Park Plaza is said to be worth more than Rs. 500 Crore.
Image Credits: Times of India.