Money & Banking

ED's IL&FS probe: Edelweiss ARC says no exposure to Kohinoor project during 2005-2012

Our Bureau Mumbai | Updated on August 23, 2019 Published on August 23, 2019

Edelweiss group on Friday clarified that it had no exposure to Kohinoor during the 2005-2012 period.

In a statement to the stock exchanges, Edelweiss Financial Service Ltd (EFSL) said public sector banks had extended loans to Kohinoor Square project in 2010 which subsequently turned into non-performing one.

From 2015 onwards, Edelweiss Asset Reconstruction Company (EARC) participated in public auctions and bought the loans.

EARC exposure to the Kohinoor Square project is about Rs 120 crore invested under the 15:85 structure.

EFSL underscored that the current probe by IL&FS on Kohinoor transactions are for the period of 2005-12 and related to transactions entered into by IL&FS and certain parties. Edelweiss group had no exposure to Kohinoor during that period.

"With the intention of completing the project and providing relief to both the small business owners, home buyers and banks, Edelweiss ARC took the company through IBC process.

"A plan was approved by NCLT that would deliver unit owners their houses and small offices along with payment to lenders," EFSL said.

The project is moving at fast pace and is nearing completion with small shop owners having already been offered possession, it added.

EFSL said the resolution of the asset is also on track to provide all lenders with maximum possible recovery.

As per the statement: "Enforcement Directorate (ED) has asked for some information and understanding of the process and the same has been briefed to them by us."

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Published on August 23, 2019
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