Mumbai: After Rs 439 crore default, plot for 125-storey hotel on the block | Mumbai News – Times of India

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MUMBAI: Greater than a decade in the past, the nation’s tallest 125-storey luxurious resort was to be constructed on this prime sea-facing Charni Street plot in south Mumbai. Someday later, the developer modified the design and proposed two 60-storey residential towers on the two.2-acre plot. All of the plans got here to naught, although.
The land might be auctioned this Friday after the developer, Marine Drive Hospitality, a part of the DB Realty Group, defaulted on a Rs 439 crore mortgage from IFCI and the Central Financial institution of India.
The Edelweiss Asset Reconstruction Firm (EARC) has put the property on the block and glued a reserve value of Rs 485 crore.
Will probably be bought on the “as is the place is”, “as is what’s”, and “no matter there’s” foundation on August 21 to recuperate dues totalling Rs 473 crore with curiosity, prices and expenses. Final November, EARC’s approved officer took symbolic possession of the property after “the borrower/guarantors did not repay the quantity”.
Property market sources stated will probably be attention-grabbing to see who bids for this plot as a result of there are a number of stakeholders and encumbrances. Pune’s Panchshil Realty had picked up a stake within the undertaking for 25 residences unfold over 50,000 sq ft space. It had additionally prolonged a mortgage of Rs 150 crore for it to DB.
Round three dozen tenants who lived on the property and have been eligible for rehabilitation by DB on the identical plot have additionally raised objection to the public sale. These tenants issued a public discover difficult the public sale, claiming they’d given their consent for rehabilitation to a “particular developer”. “In such an occasion, the redevelopment can’t be carried out by another individual or social gathering,” they stated.
The plot, subsequent to SK Patil Udyan close to Charni Street railway station, was being collectively developed by DB and Panchshil Realty however work on the 2 high-end towers obtained stalled final yr over non-payment of loans. Bookings for the undertaking have been returned and a few advances are but to be paid again with curiosity.
The plot has a historical past of litigation and been jinxed for the developer for greater than a decade. D B acquired it from Suresh Estates in 2005. The developer initially deliberate India Tower (Park Hyatt) with 125 flooring. It fought the state’s refusal to grant it increased flooring spce index (FSI) within the Supreme Courtroom.
In 2011, BMC issued a stopwork discover to the resort undertaking for failure to pay Rs 200 crore in arrears. It charged a premium for constructing concessions sought by the developer. Later, DB shelved the resort plans over monetary viability and began scouting for a accomplice to develop the plot for a residential undertaking.

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