Rs 2.9k crore Loan: Yes Bank will take over the headquarters of Anil Ambani

MUMBAI: Yes Bank has issued a possession notice for Anil Ambani’s Reliance group headquarters in Santacruz and two other offices in southern Mumbai. In its notice, the bank said it was collecting against a loan of Rs 2,892 crore to Reliance Infrastructure. The bank’s action includes taking over two floors of office space at Nagin Mahal in Backbay under a law that allows it to sell off defaulters’ assets.
The head office was located on 21,432 square meters of land, a legacy from the acquisition of BSES by Reliance two decades ago. BSES was renamed Reliance Energy and subsequently repositioned as Reliance Infrastructure, which currently owns the property.
The group moved to the Santacruz office in 2018. The building, next to the Western Express Highway, overlooks Mumbai Airport. In addition to Reliance Infrastructure, it houses the financial services offices of Reliance, including Reliance Capital, Reliance Housing Finance, Reliance General Insurance and other group companies. In recent months, as the group has scaled back its operations, most of the office space has been consolidated into the North Wing and the property has been leased to JLL. Following the Covid-19 lockdown, most employees have been asked to work from home and there has been further consolidation of office space.
Yes Bank, which faced a crisis in March this year due to bad debts, has substantial loans owed to the Anil Ambani group, to which it had an exposure of nearly Rs 12,000 crore.
Over the past two decades, the Anil Ambani group has aggressively grown into new businesses increasing high debt levels. However, the companies did not generate the cash flow needed to repay the debt. Several of them also got bogged down in legal disputes that made it difficult to settle debts.
The private bank said it gave the company 60 days’ notice to repay the loan on May 5 under the 2002 Act on Securitization and Reconstruction of Financial Assets and Enforcement of Collateral (Sarfaesi ). As the company had made no repayment, the bank had taken possession under the law. The law allows banks to take possession and sell assets belonging to defaulting debtors without recourse to the courts.
To concern Yes Bank will take over the headquarters of Anil Ambani

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