ICICI Bank has taken possession of Mantri Developers' 30,000 square feet (sq ft) corporate office in Bengaluru over non-payment of dues, a notice issued by the bank said.
Mantri Developers said in a statement that the project against which it took the loan from the bank has got sufficient cash flows to repay its loan obligations. The company is also seeking re-schedulement of the loan.
In a newspaper advertisement published over the weekend, the bank informed that it has taken possession of Mantri House under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).
The bank said it had issued a demand notice on November 22, 2019 to the borrower Shore Dwellings Pvt Ltd (formerly known as Mantri Dwellings Pvt Ltd) to repay ₹53.62 crore within 60 days. Having failed to recover the amount, ICICI Bank took possession of the property on August 4, the notice said.
“The borrowers having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned (ICICI) has taken possession of the property described herein below in exercise of powers conferred on him/her under sub-section (4) of the Section 13 of the said Act read with Rule 8 of the Security Interest (Enforcement) Rules 2002 on this the 04 day of August of the year 2020,” ICICI Bank said in the newspaper advertisement.
"The borrower in particular and the public in general is hereby cautioned not to deal with the property and any dealings with the property will be subject to the charge of ICICI Bank for an amount of Rs 53.62 crore and interest thereon," the notice added.
The land parcel is located at No 41, Vittal Mallya Road, Bengaluru, Karnataka, measuring land area of 12,551.25 sq ft along with the building having built up area of 30,268 sq ft.
"Due to current recessionary trend in the real estate business, sales couldn't happen as per projections given at the time of loan sanctioned, hence bank expressed their inability to release funds from balance undrawn ₹70 crore limit and classified account as NPA, and subsequently issued the possession notice," the company said in a clarification.
“..Shore Dwellings Private Limited (formerly Mantri Dwellings Private Limited) has got sufficient cash flow in the said project to repay its loan obligations. The surplus amount receivable in the project covers more than four times the current outstanding amount,” the clarification said.
“The company confirms that there should be no concern for any stakeholders in the said project or with Mantri Group at large. The company is engaged with ICICI Bank seeking re-schedulement of loan and will find a suitable resolution for the same soon,” the clarification added.
Sushil Mantri is the promoter of Mantri Developers. The company has several projects in Bengaluru. Over the past two years, some of the projects have been delayed.
A National Green Tribunal order in 2016 had imposed a fine of Rs 117 crore against the company for encroaching on a lake and destroying wetlands in Bengaluru for developing its project Mantri Agara.
Earlier this year, it was reported that developers Prestige Estates Pvt Ltd and RMZ Corp were in talks to jointly buy the project for about Rs 1,500 crore.
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