Exim Bank has issued a possession notice taking the 2.13 acre property of Latha Rajinikanth, wife of Tamil film actor Rajinikanth, who was the guarantor for the financial assistance the bank granted to Mediaone Global Entertainment Ltd. The company which produced Kochadaiiyaan, an animation movie directed by the actor’s daughter Soundarya Rajinikanth with Rajinikanth and Deepika Padukone in the lead role, has failed to pay Rs 22.21 crore to Exim Bank, according to the notice.
Mediaone Global Entertainment, a listed company, said that the company is in the process of clearing the loan on or before March 31, 2015 and “the act of Exim Bank to call upon Guarantors Latha Rajinikanth and Devender C R to repay the loan, when the principal borrower is making arrangements to repay is not warranted”,
According to the notice issued by Exim Bank, the bank has issued a demand notice on September 15, 2014, calling upon Latha Rajinikanth to repay the amount of Rs 22.22 crore due as on July 17, 2014 together with further interest and liquidated damages as per contractual rates and other expenses thereon with effect from July 18, 2014 till payment, within 60 days from receipt of the notice.
“The Borrower having failed to repay the above referred amount of Rs 22.21 crore to Exim Bank, notice is hereby given to the Borrower in particular and to the public in general that the undersigned has taken possession of the property/asset described herein below in exercise of powers conferred on them on December 23, 2014 on behalf of Exim Bank,” the bank stated. It added that all the piece and parcel of property in Padappai, Sriperumbudur, “totaling Acre 2.13 cents together with structures thereon or to be erected thereon”.
Mediaone Global Entertainment, which has been in the business of production, distribution and exhibition for the last ten years, said that it has borrowed Rs 20 crore from Exim Bank and has its own capacity and business to repay the loan.
“Infact the company is in the process of clearing the Loan on or before March 31, 2015 and had various discussions with officials of Exim Bank in December 2014 to settle the matter,” it said.
It may be noted that the company produced Kochadaiiyaan, an animated movie which saw a budget of around Rs 125 crore according to the industry sources. The movie, which was made using motion capture technology with technical expertise from UK and US and was released in various languages across the world. Reports say that the movie did not perform well enough at the box office