Bhaane Retail acquires iconic Rhythm House in insolvency auction

18 Oct 2024 CW Team

Once a cultural landmark frequented by music lovers and Bollywood stars like Kishore Kumar, Shammi Kapoor, and AR Rahman, Rhythm House was later acquired by fugitive diamond merchant Nirav Modi in 2017 through his firm Firestar Diamond for Rs 320 million. Modi had planned to convert the space into a luxury jewelry showroom. However, the property was seized by the Enforcement Directorate (ED) in 2018 amid investigations into the Punjab National Bank (PNB) scam, where Modi was implicated for defaulting on Rs 65 billion in loans through fraudulent letters of undertaking (LOUs).

Following a 2020 National Company Law Tribunal (NCLT) order for liquidation, the ED released Rhythm House to allow banks to auction the property and recover dues. The ED has seized assets worth Rs 26 billion from Modi so far.

A spokesperson for Bhaane Retail confirmed the acquisition, stating, "We have completed our due diligence and plan to expand our retail footprint in the city." While financial details of the bid remain undisclosed, property consultants estimate the location could command lease rentals of ?900-1,000 per sq. ft. per month due to its prime location and cultural significance.

Rhythm House, spanning 16,000 sq. ft. with ground and mezzanine floors, holds retail and storage space. Global celebrities like Pandit Ravi Shankar, Zakir Hussain, and members of the band The Police were among its visitors. Despite attempts to adapt by diversifying into electronic accessories and video games, the store closed in 2016, succumbing to challenges from digital technologies and piracy.

Shahi Exports' promoter family recently made headlines with their purchase of an eight-storey residential property in London’s Notting Hill for $27 million.

(ET)

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Bhaane Retail, a subsidiary of India’s largest apparel manufacturer Shahi Exports, has successfully acquired the iconic Rhythm House in South Mumbai's Kala Ghoda through an insolvency auction. Bhaane’s winning bid of Rs 300 million secures ownership of the historic music store, which had closed in 2016 after nearly seven decades of operation. Once a cultural landmark frequented by music lovers and Bollywood stars like Kishore Kumar, Shammi Kapoor, and AR Rahman, Rhythm House was later acquired by fugitive diamond merchant Nirav Modi in 2017 through his firm Firestar Diamond for Rs 320 million. Modi had planned to convert the space into a luxury jewelry showroom. However, the property was seized by the Enforcement Directorate (ED) in 2018 amid investigations into the Punjab National Bank (PNB) scam, where Modi was implicated for defaulting on Rs 65 billion in loans through fraudulent letters of undertaking (LOUs). Following a 2020 National Company Law Tribunal (NCLT) order for liquidation, the ED released Rhythm House to allow banks to auction the property and recover dues. The ED has seized assets worth Rs 26 billion from Modi so far. A spokesperson for Bhaane Retail confirmed the acquisition, stating, We have completed our due diligence and plan to expand our retail footprint in the city. While financial details of the bid remain undisclosed, property consultants estimate the location could command lease rentals of ?900-1,000 per sq. ft. per month due to its prime location and cultural significance. Rhythm House, spanning 16,000 sq. ft. with ground and mezzanine floors, holds retail and storage space. Global celebrities like Pandit Ravi Shankar, Zakir Hussain, and members of the band The Police were among its visitors. Despite attempts to adapt by diversifying into electronic accessories and video games, the store closed in 2016, succumbing to challenges from digital technologies and piracy. Shahi Exports' promoter family recently made headlines with their purchase of an eight-storey residential property in London’s Notting Hill for $27 million. (ET)

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