Four star resort, Palm Beach resort has been put up for sale once again.
Twice on the market already but having failed to obtain sufficient bids, the resort was put up for sale by the State Bank of India (SBI) on Thursday. The resort, which is under the name of Ibrahim Ali Manik, was auctioned by the bank sue to failure of repaying a loan taken by Monaza Construction and Guardian Agency Pvt Ltd after putting up the resort as collateral. The Civil Court passed the verdict giving the bank the authority to auction off the resort in order to recover the unpaid loan amount.
Palm Beach Resort was initially put up for sale by SBI for USD 26 million which adds up to MVR 400.9 million. However, with no Reponses received for the asking price, the price was reduced to USD 15.3 million, which is equivalent to MVR 235.9 million. According to SBI, interested buyers must pay the bank USD 1 million within 15 days while the remaining amount must be paid within 60 days.
Palm Beach Resort claims that SBI is auctioning off the resort after having agreed that USD 5.5 million must be paid to the bank instead of auctioning off the island earlier this February. The lawyers of Palm Beach Resort said the reduction was agreed upon in writing along with signatures from both parties. However, the amount was increased to USD 8.1 million at the time of payment, while denying the right to auditing the loan account.
