News: YES Bank puts Essel Group's Lutyens' bunglow on sale at reserve price of Rs 430 crore-16-10-2020
Spread over 2.8 acre, the sprawling bungalow at 4, Bhagwan Das road was purchased by Subhash Chandra promoted Essel Group at Rs 304 crore in 2015.
NEW DELHI: YES bank has put a prime bungalow in Lutyens' Delhi on sale with a reserved price of Rs 430 crore following a default by the Essel Group promoted RPW projects private limited, three people familiar with the matter said.
Spread over 2.8 acre, the sprawling bungalow at 4, Bhagwan Das road was purchased by Subhash Chandra promoted Essel Group at Rs 304 crore in 2015.
According to the notice issued by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), the bank has to recover Rs 943 crore from the company.
ET has a copy of the notice.
“Delhi-based Anant Raj group was the owner before Essel Group bought it. Anant Raj group had planned to redevelop the plot and sell independent floors but couldn’t get the necessary permissions,” said one person familiar with the matter.
The auction is taking place after National Company Law Tribunal approved Adani properties private limited (APPL), A Dani Group company to acquire 3, Bhagwan Das road for Rs 400 crore.
The bank has asked interested parties to inspect the property on working days between November 2, 2020 to November 7, 2020 (both inclusive) between 10:30 am to 5:30 pm with prior notice.
The last date to submit the Earnest Money Deposit (EMD) is November 9.
EMD is 10% of the reserved price.
“Bank auctions do not impact the market price in Lutyens' Delhi as the takers for such properties are few. The prospective buyers usually look for clean properties and are willing to wait. Even the sellers are willing to wait to get the right price,” said Rohit Chopra, founder of Southdelhiprime, a boutique real estate consultancy firm.
YES bank did not respond to the email query till press time.
“We would not like to comment on this since the matter is subjudice,” said an Essel group spokesperson.
Bank had taken the symbolic possession on June 15, 2020 and the e-auction will take place on November 10, 2020.
YES bank has said that property will not be sold in less than the reserved price.
“Successful bidder shall have to pay 25% of the purchase amount (including Earnest Money) already paid within 24 hours of the closure of the E-Auction sale proceedings. The balance 75% of the purchase price shall have to be paid within 15 days of confirmation of the sale by the bank,” bank has said in the notice.
Lutyens' homes are owned by many of India’s business elite. LN Mittal, Sunil Mittal, Naveen Jindal, Vijay Shekhar Sharma, as well as Adani Properties of the Adani Group, have acquired residences in this super-posh area.
