Some of these properties will be auctioned if the former banker fails to pay his dues to Indiabulls within the next two months.
These are perhaps the most expensive addresses in the country and may go under the hammer if their embattled owner Yes Bank founder Rana Kapoor fails to repay Indiabulls within the next two months.
A two-storey residential building known as Khursheed-Abad on Altamount Road, Indiabulls Blue Tower B and C in Worli and three duplexes in Sesen, Napean Sea Road in Mumbai and 40, Amrita Shergill Marg in what has come to be known as New Delhi’s billionaires’ row could be on the block in the coming days.
Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd have served notices to its borrowers under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi). The loan default against the Mumbai properties is about Rs 650 crore.
Rana and his family-controlled businesses had mortgaged these properties to Indiabulls. Kapoors allegedly owe Rs 1,200 crore to the real estate company.
“We have already received Section 9 order in our favour from the Delhi High Court. We have now initiated the SARAFESI process, we are well collateralised and expect to recover our Rs 1,200 crore in the forthcoming auction of said properties,” an Indiabulls spokesperson told Moneycontrol on June 25.
Trouble seems to be mounting for Kapoor as the Central Bureau of Investigation on June 26 filed a charge sheet against him and the promoters of Dewan Housing Finance Ltd in a separate case of cheating and corruption registered in early March.
The Sarfaesi law requires a two-month notice to be given to borrowers after the loans are classified as non-performing assets, so the pre-auction process could take two-three months, the spokesperson said.
“We are extremely well collateralised with ‘heart of town’ prime properties by over two times and expect to recover the due mentioned above,” the spokesperson said.
Here’s a look at Rana Kapoor’s real estate spread:
Khursheed-Abad on Altamount Road
This is an independent two-storey residential building located on “super-premium” Altamount Road. The size of the plot is around 1,400 sq yard and is expected to fetch anything between Rs 135 crore and Rs 140 crore. The bungalow has six to seven rooms, say real estate consultants.
A 2,500 sq yard plot in the vicinity was up for sale a few months ago and was valued at around Rs 250 crore.
Despite COVID-19, properties like these are much in demand. “This property would command a premium due to its location and the address. If this property were to be auctioned, potential buyers could be industrialists or major stockbrokers,” said Ritesh Mehta, senior director and head, West India, Residential, Jones Lang Lasalle India.
Indiabulls Blue Tower B and C in Worli
The former banker reportedly owns around 10 floors in this project, with a floor plate of 5,000 to 6,000 sq ft. The price per sq ft for a residential unit is around Rs 70,000 per sq ft. These properties could rake in anywhere between Rs 350 crore and Rs 400 crore, brokers told Moneycontrol.
Duplexes on Sesen, Napean Sea Road
Each of these apartments, say brokers, is spread over 10,000 sq ft. The former banker owns three duplex units in Sesen valued at around Rs 110 to 112 crore each. The total value of the apartments is estimated to be around Rs 300 crore.
40, Amrita Shergill Marg
In 2017, Ranas borrowed around Rs 370 crore from Indiabulls Housing to finance the purchase of a bungalow on Amrita Shergill Marg in Lutyens Delhi, the capital’s power district.
Kapoor’s family acquired this bungalow for around Rs 380 crore from Gautam Thapar, who mortgaged the property to Yes Bank for a corporate loan of Rs 600 crore and later sought to settle the dues by offering to sell the property.
The loan and the sale have raised eyebrows, with the Enforcement Directorate filing a case of money laundering against Kapoor and his wife, Bindu.
Real estate brokers say the bungalow is up for sale again and may command Rs 425 crore to 450 crore. The total built-up area is around 12,500 sq ft and the size of the plot is 6,000 square yards.
A bungalow in the vicinity sold for about Rs 250 crore a few years ago, an indication that the area has been insulated from the slowdown in the real estate market.
"Most of these bungalows are located in Lutyens Zone where no alterations or extensions are permissible. The cost of the unit is dependent on the built-up area available," explains a broker.
Il Palazzo, Malabar Hill
Other properties owned by the former banker and his family include a duplex apartment in Il Palazzo in Mumbai’s Malabar Hill, the haunt of the rich and the famous. This is a sea-facing property spread across 3,500 sq ft and priced at around Rs 40 crore. A similar property sold for Rs 42 crore last year.
NCPA apartmentsKapoor’s family also owns a 2,300 sq ft unit in NCPA apartments, a premium building located at Nariman Point. Each unit is valued at Rs 28 to Rs 30 crore, local brokers said.