SBI seizes two properties following loan default

The State Bank of India has taken control of two residential properties which were owned by fine jewellery brand PC Jeweller. The bank has filed a case against PC Jeweller after the business defaulted on a loan valued at Rs 1,168.9 crore.

The State Bank of India has filed a case against PC Jeweller at the National Company Law Tribunal with the aim of recovering its funds, the Gem and Jewellery Export Promotion Council reported on its website. PC Jeweller’s two properties in New Delhi had been mortgaged by the business and its guarantors as security for the bank loan.
 
The State Bank of India has issued a public notice which informs the public not to have any dealings with the two properties because they will be subject to the bank’s charge of Rs 1,267 crore. This is in addition to any funds withstanding from other secured creditors.
 
PC Jeweller has been hit with numerous financial difficulties since 2018 when its promoter and managing director Balram Garg was involved in an alleged bank fraud case and arrested by the Enforcement Directorate. The business has subsequently defaulted on loans with several banks and faced seizures of its assets to repay these loans.  
 
The brand has closed 17 of its brick-and-mortar stores in the first half of the 2024 financial year. As of September 30, 2023, PC Jeweller counted 63 operational stores, although its Delhi stores are currently shut due to court proceedings.