Edelweiss Asset Reconstruction Co: No exposure to Kohinoor during period probed

Mumbai: Edelweiss Asset Reconstruction Co said it had started acquiring non-performing assets of Kohinoor Square project 2015 onwards and that the company had no exposure to the group during 2005-12, the period for which the latter’s group transactions are currently being probed by the Enforcement Directorate (ED). The Enforcement Directorate is investigating alleged irregularities relating to loans by IL&FS group to Kohinoor Projects during 2005-12, the company said.

“Public sector banks had extended loans to Kohinoor Square project in 2010 which subsequently turned NPA (non-performing assets). From 2015 onwards, Edelweiss ARC participated in public auctions and bought the loans," the company said in the notification to exchanges. The company said the probe agency had sought some information on the process of bad loan acquisition, and the same had been given.

The project is moving at a fast pace and is nearing completion, with small shop owners having already been offered possession, the release said. Speaking to CNBC-TV18 channel, Edelweiss Asset Reconstruction Managing Director and Chief Executive Officer Raj Kumar Bansal said the company's 1.2-bln-rupee investment in Kohinoor's project is not at risk, and they have already started selling commercial space.

Thursday, the probe agency had questioned Maharashtra Navnirman Sena Chief Raj Thackeray for nine hours in an alleged money laundering case relating to loans by IL&FS group to Kohinoor CTNL, a company owned by Unmesh Joshi, the son of Maharashtra’s former chief minister Manohar Joshi of the Shiv Sena. Maharashtra Navnirman Sena was carved out of the Shiv Sena

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