Palm Beach Island Resort & Spa, Maldives – Palm Beach Island Resort and Spa has publicly raised multiple allegations against State Bank of India (SBI), based in Maldives, including unlawful foreclosure which bypassed best practices.
In a press statement released by the resort, the resort stated that SBI followed an unlawful foreclosure process, after both parties had come to an out of court agreement as a means to prevent losing the mortgaged resort to the bank. It was further said that the bank has since decided to impose unfair and unlawful amounts over the applicable charges, “in an apparent effort to frustrate attempts” by the mortgagor to settle accounts, which the resort claims to to effect an unlawful agenda to favour a third party, specially during an ongoing global pandemic.
The resort condemned the “unlawful and predatory ‘pound of flesh’ attitude and demeanor employed by the Bank as well as its senior officers” and called upon the authorities to intervene accordingly, adding that the resort believes that the Bank has demonstrated malice by moving against letting the mortgagor settle all dues.
The statement also revealed that the foreclosure process followed by the bank was based on a decidedly “secret” valuation that the Bank has so far refused to disclose to the mortgagor, concealing and devastating the fair value of the property, highlighting that such practice is prohibited by Indian laws and judicial precedents.
“Best practice and law require a fair valuation be undertaken and shared with mortgagor. We have pleaded with the Bank with and brought this matter to their attention numerous times, highlighting that a faulty valuation would only produce a faulty process. Thus, it is clear that the rights of the Resort are being ravaged unlawfully.” The bank said.
The statement continued saying that “We wish to bring the aforementioned to the attention of the public, with the intention of ensuring borrowers and mortgagors amongst us are made aware of the potential risk or dangers that they may likely face.” further adding that this sets a dangerous precedent for the tourism sector in general and that of tourism property valuations in the future.
SBI is yet to address the matter in an official form, and it has not yet been known whether any authorities, including the Tourism Ministry has intervened in the matter.