Generally, when a term loan is granted, it is granted for buying plant & machinery, buildings , etc by pledging the same asset. In the present case, certainly banks would have obtained hypothecation of the assets bought, in addition to mortgage of land records. Though I don't rule out the possibility of misdeeds, the allegation that loan of Rs215 Cr was granted against mortgage of land valuing only Rs1.69 Cr looks too imaginary.
Generally, when a term loan is granted, it is granted for buying plant & machinery, buildings , etc by pledging the same asset. In the present case, certainly banks would have obtained hypothecation of the assets bought, in addition to mortgage of land records. Though I don't rule out the possibility of misdeeds, the allegation that loan of Rs215 Cr was granted against mortgage of land valuing only Rs1.69 Cr looks too imaginary.