Yes Bank is set to take control of real estate developer Sumer Group’s 50 per cent share in two land parcels totalling 6.4 acres held by its joint venture company in Mumbai’s Santacruz locality for non-payment of dues worth more than Rs 479 crore. The bank notified the developer, on Friday last week, of its move under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. ET has seen a copy of this notice.
Sumer Group had entered into a joint venture with Radius Developers in 2016 to develop both the adjacent land parcels. While construction work on one of the land parcels is underway, work on the other land parcel has to commence. In July, Yes Bank had sent a demand notice to Sumer to repay its dues within 60 days. With its latest action, the bank will get control of the land, which is part of Sumer’s share in the joint entity.
Yes Bank declined to comment on the development while calls and text messages to Rahul Shah, director of Sumer Group, remained unanswered till press time on Sunday. According to Radius Developers, Sumer’s partner in this project, the development will continue and it is looking to bring in more funds into this project soon.
Source: Economic Times