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)

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)

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..