Piramal Capital given creditor status for Radius Estate's project
Real Estate

Piramal Capital given creditor status for Radius Estate's project

The National Company Law Tribunal (NCLT) has upheld the charge held by Piramal Capital & Housing Finance on Radius Estate Projects' development located on a 5.4-acre site in Santacruz, Mumbai. This ruling clarifies the financial obligations associated with the Avenue 54 project and resolves a dispute between creditors, including J.C. Flowers Asset Reconstruction and Piramal Capital.

The legal battle centered on Radius Estate Projects, formerly Vishwaroop Realtors, which had initially secured Rs 7 billion in loans backed by mortgages on the project's land. These loans were obtained through a series of agreements with financial institutions.

In 2016, Radius Estate Projects executed a mortgage deed in favor of IDBI Trusteeship for a term loan from Yes Bank, which was later transferred to J.C. Flowers Asset Reconstruction. Additional loans increased the total to Rs 7 billion. By 2018, Diwan Housing Finance Limited (DHFL), later acquired by Piramal, provided a project loan totalling Rs 20 billion to Sumer Radius Realty, a subsidiary of Radius Estate Projects.

Disputes emerged when Sumer Radius Realty and other joint entities defaulted on their loan repayments. A mortgage was subsequently created in favour of DHFL without the necessary No Objection Certificate (NOC) from Yes Bank, leading to claims by J.C. Flowers that the subsequent charges were invalid and should exclude Piramal as a financial creditor.

The NCLT reviewed the case and ruled in favour of Piramal Capital & Housing Finance, affirming that while the initial NOC was conditional and later revoked, the subsequent mortgages and financial arrangements by DHFL/Piramal were valid. The tribunal found J.C. Flowers' claims to invalidate these charges unfounded.

The decision reinforces Piramal's position as a major financial creditor with legitimate claims over the Avenue 54 project's assets. It also highlights the importance of adhering to proper procedures in financial agreements and securing necessary approvals for mortgages.

In June 2023, Piramal Capital & Housing sold a Rs 36.56 billion bad loans portfolio, including those related to the Radius Estate Project, to Omkara ARC. This ruling has significant implications for the stakeholders, securing Piramal's financial interests and providing clarity on the legal standing of Radius Estate Projects' financial obligations.

(ET)                       

The National Company Law Tribunal (NCLT) has upheld the charge held by Piramal Capital & Housing Finance on Radius Estate Projects' development located on a 5.4-acre site in Santacruz, Mumbai. This ruling clarifies the financial obligations associated with the Avenue 54 project and resolves a dispute between creditors, including J.C. Flowers Asset Reconstruction and Piramal Capital.The legal battle centered on Radius Estate Projects, formerly Vishwaroop Realtors, which had initially secured Rs 7 billion in loans backed by mortgages on the project's land. These loans were obtained through a series of agreements with financial institutions.In 2016, Radius Estate Projects executed a mortgage deed in favor of IDBI Trusteeship for a term loan from Yes Bank, which was later transferred to J.C. Flowers Asset Reconstruction. Additional loans increased the total to Rs 7 billion. By 2018, Diwan Housing Finance Limited (DHFL), later acquired by Piramal, provided a project loan totalling Rs 20 billion to Sumer Radius Realty, a subsidiary of Radius Estate Projects.Disputes emerged when Sumer Radius Realty and other joint entities defaulted on their loan repayments. A mortgage was subsequently created in favour of DHFL without the necessary No Objection Certificate (NOC) from Yes Bank, leading to claims by J.C. Flowers that the subsequent charges were invalid and should exclude Piramal as a financial creditor.The NCLT reviewed the case and ruled in favour of Piramal Capital & Housing Finance, affirming that while the initial NOC was conditional and later revoked, the subsequent mortgages and financial arrangements by DHFL/Piramal were valid. The tribunal found J.C. Flowers' claims to invalidate these charges unfounded.The decision reinforces Piramal's position as a major financial creditor with legitimate claims over the Avenue 54 project's assets. It also highlights the importance of adhering to proper procedures in financial agreements and securing necessary approvals for mortgages.In June 2023, Piramal Capital & Housing sold a Rs 36.56 billion bad loans portfolio, including those related to the Radius Estate Project, to Omkara ARC. This ruling has significant implications for the stakeholders, securing Piramal's financial interests and providing clarity on the legal standing of Radius Estate Projects' financial obligations.(ET)                       

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?