Piramal Capital given creditor status for Radius Estate's project

12 Aug 2024 CW Team

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)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

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)

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..