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Yes Bank Founder Rana Kapoor's Fancy Delhi, Mumbai Properties May be Sold-off If Indiabulls Not Repaid in 2 Months

File photo of Rana Kapoor. (Image: CNBC-TV18/Twitter)

File photo of Rana Kapoor. (Image: CNBC-TV18/Twitter)

According to a report by Moneycontrol, a two-storey residential building known as Khursheed-Abad on Altamount Road, Indiabulls Blue Tower B and C in Worli and three duplexes in Sesen, Napean Sea Road in Mumbai and 40, Amrita Shergill Marg could be sold off in an auction in the coming days.

  • News18.com New Delhi
  • Last Updated: June 26, 2020, 2:17 PM IST
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If Yes Bank founder Rana Kapoor fails to repay Indiabulls within the next two months, then one of the most expensive addresses in India may be sold-off.

According to a report by Moneycontrol, a two-storey residential building known as Khursheed-Abad on Altamount Road, Indiabulls Blue Tower B and C in Worli and three duplexes in Sesen, Napean Sea Road in Mumbai and 40, Amrita Shergill Marg could be sold off in auctions in the coming days.

These properties have come to be known as as New Delhi’s billionaires’ row.

Notices have been served by Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd, to its borrowers under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi). For the Mumbai properties, the loan default against them is Rs 650 crore, the report states.

These properties had been mortgaged by Rana and his family-controlled businesses to Indiabulls. The report points out that the Kapoors allegedly owe Rs 1,200 crore to the company.

An Indiabulls spokesperson told Moneycontrol that they had already received Section 9 order in their favour from the Delhi High Court.

The spokesperson added that they had now initiated the SARAFESI process, and were well collateralised and expected to recover their Rs 1,200 crore in the forthcoming auction of said properties.

A chargesheet had been filed by the CBI on June 26 against Kapoor and the promoters of Dewan Housing Finance Ltd in a separate case of corruption and cheating in early March.

A two-month notice is required to be given to borrowers after the loans are classified as non-performing assets under the Sarfaesi law, which is why it could take two to three months for the pre-auction process, the spokesperson told Moneycontrol.

They added that they were "extremely well collateralised with ‘heart of town’ prime properties", by more than two times and looked forward to recovering the due.

The Khursheed-Abad property on Altamount Road is an independent two-storey residential building. The 1,400 square yard plot might fetch between Rs 135 crore and Rs 140 crore in an auction. According to real estate consultants, the bungalow has six to seven rooms.

Ritesh Mehtra, senior director and head, West India, Residential, Jones Lang Lasalle India, said that the property would "command a premium" owing to its address, location and said that industrialists or major stockbrokers could be among the buyers.

About 10 floors of the Indiabulls Blue Tower B and C in Worli are reportedly owned by Rana Kapoor, with a floor plate of 5,000 to 6,000 sq ft. The price per sq ft for a residential unit is around Rs 70,000 per sq ft. Brokers told Moneycontrol that these properties could fetch between Rs 350 crore and Rs 400 crore.

Brokers say that each of these apartments is spread over 10,000 sq ft. Three duplex units in Sensen, valued at Rs 110 to 112 crore each are also owned by Kapoor. Its estimated that the total value of the apartments is around Rs 300 crore.

In the year 2017, the Ranas purchased a bungalow on the Amrita Shergill Marg in Lutyens, Delhi, after borrowing Rs 370 crore for the purpose from Indiabulls Housing.

The family got this bungalow at about Rs 380 crore from Gautam Thapar. Thapar, for a corporate loan of Rs 600 crore, had mortgaged the property to Yes Bank. He later wanted to settle the dues by offering sell the property.

The ED filed a case of his money laundering against Kapoor and his wife, Bindu, after the loan and the sale. According to real estate brokers, the bungalow, may fetch Rs 425 crore to 450 crore. The size of the plot is 6,000 square yards and the total built-up area is around 12,500 sq ft, Moneycontrol reports.

The area might also be insulated from the slowdown in the real estate market, as indicated by the fact that a bungalow in the vicinity had sold for about Rs 250 crore a few years ago.

A duplex apartment in the Il Palazzo, Malabar Hill, is among the other properties owned by Kapoor and his family. The sea-facing property is spread across 3,500 sq ft and priced at around Rs 40 crore.

The former banker's family also possesses a 2,300 sq ft unit in NCPA apartments, which is a premium building located at Nariman Point. Local brokers told Moneycontrol that every unit is valued at Rs 28 to Rs 30 crore.

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