Anil Ambani
Anil Ambani

YES Bank has said it has taken over possession of the Anil Dhirubhai Ambani Group (ADAG)’s Mumbai headquarters building in Santacruz east, along with two floors of Nagin Mahal on Veer Nariman Road in south Mumbai, after the ADAG failed to repay dues worth Rs 2,892 crore to the bank.

In three separate possession notices published in Financial Express on Wednesday, YES Bank said that on May 6 this year, it had issued a demand notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFESI), calling upon Reliance Infrastructure Limited to repay Rs 2892,44,41,132 within 60 days from the date or receipt of the notice.

According to the possession notices from the private sector lender, since Reliance Infrastructure Limited failed to repay the amount, YES Bank took over the three properties on July 22, under section 13(4) of the Act.

The three properties taken over by the bank are the Santacruz east property measuring 21432.28 sq m, approximately 4,936 sq ft of office premises on the sixth floor of Nagin Mahal, and approximately 1,717 sq ft of a flat on the sixth floor of Nagin Mahal.

The ADAG is one of YES Bank's biggest borrowers, with exposure of around Rs 12,000 crore. Anil Ambani told Enforcement Directorate (ED) officials in March that the ADAG’s entire exposure to YES Bank was fully secure and in compliance with laws and financial regulations. He added that the group did not have any direct or indirect exposure to Rana Kapoor, his wife, and his daughters, and nor was it exposed to any entities controlled by them.

In May, the ED filed a charge sheet against Kapoor in connection with the YES Bank fraud case. Kapoor, who has been accused of receiving kickbacks in lieu of sanctioning loans to certain firms, was arrested by the ED on March 8 under the Prevention of Money Laundering Act.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal