Banks approach court as GVK Group fails to repay loan

Hyderabad : Six banks across the country have decided to initiate legal action against 9 companies of the GVK Group. The GVK Group failed to repay the debt of US $1 billion and in spite of many reminders, GVK cool developers have failed to settle the loan.
The inability of the GVK groups to pay back the loan taken from Canara Bank, ICICI Bank, Bank of Baroda, Bank of India, Axis Bank and Indian Overseas Bank, these banks have decided to approach the court to prosecute the defaulter group.
The GVK Group had obtained US $ 1 billion in 2011 and acquired  US $ 35 million through credit letters. Furthermore, the group had taken another loan of US $ 160 million in the year 2014.  The group had failed to repay these loans.
The court hearing will begin on June 13 against 9 companies of GVK Group.  Seven companies of this group are based in Singapore while the remaining two companies are based in Secunderabad.
According to a report the GVK Group had failed to obtain the contract of Alpha mining project in Australia due to which the group was unable to pay back the bank loan from December 31, 2012.   After a long wait the banks through a notice informed the group about the cancellation of the contract.  No one from the group or the bank guarantors responded to the bank’s notice.