Mumbai, March 16, 2025: Edelweiss Financial Services Limited has issued a press statement refuting recent media reports regarding an FIR filed against the company. The statement clarifies that the allegations stem from a complaint by Ecstasy Realty Pvt Ltd (Ecstasy), a defaulting borrower, and that the matter is a long-standing civil dispute pending in multiple legal forums.
Key Facts of the Dispute
Ecstasy Realty’s Loan Default:
Ecstasy is a borrower who owes Edelweiss Asset Reconstruction Company Limited (EARC) approximately ₹1,683 crores as of December 31, 2024.
The debt includes ₹480 crores in overdue principal, along with interest and other charges under Non-Convertible Debentures (NCDs).
The dispute has been in the Bombay High Court since 2022, where Ecstasy previously sought relief but was denied interim relief in September 2022.
Multiple Legal Proceedings Against Ecstasy:
The case involves insolvency proceedings at NCLAT, a recovery suit in DRT/DRAT, and cheque bounce cases.
Edelweiss claims Ecstasy failed to secure the Occupation Certificate (OC) for its Parthenon Project in Andheri, which led to liquidity issues and sluggish sales.
Financial Transactions and Interest Rate Adjustments:
Edelweiss subscribed to Ecstasy’s NCDs in March 2018 and disbursed ₹600 crores.
Due to Ecstasy’s lower credit rating, its interest rate was increased from 14% to 15% in 2018 and further to 16.25% in 2019.
Ecstasy continued making payments until 2022, only challenging the interest rate after being classified as a defaulter.
Allegations of Siphoning Funds Dismissed:
Edelweiss denies claims of ₹61.68 crore siphoning, stating that all transactions were legal, transparent, and executed via registered sale deeds.
The company argues that the FIR does not substantiate the ₹750 crore fraud alleged in media reports.
Edelweiss’ Response to Media Reports
Edelweiss asserts that media coverage has misrepresented the case by omitting critical facts. The company had previously shared detailed clarifications with journalists via email on March 5, 2025. It argues that defaulting borrowers often misuse public platforms and legal delays to avoid repayment.
The firm reassured stakeholders of its commitment to protecting shareholder value and pursuing all legal avenues to recover its dues.
