Money & Banking

YES Bank buys RInfra’s Santa Cruz office for ₹1,200 cr

Our Bureau Mumbai | Updated on April 01, 2021

Bank had taken possession of the properties for non-payment of loans amounting to ₹2,892 cr   -  NAGARA GOPAL

Bank had taken possession of the properties for non-payment of loans

Anil Ambani-backed Reliance Infrastructure Limited has sold its office Reliance Centre at Santacruz, Mumbai to YES Bank for ₹1,200 crore. “Entire proceeds from sale of Reliance Centre, Santacruz is utilised only to repay the debt of YES Bank,” Reliance Infra said in a statement.

The office building is spread over a 21,432.28 square metre plot in Santacruz and housed Anil Ambani group’s headquarters.

Background

Last year, YES Bank had said that it was taking possession of the properties under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act for non-payment of loans amounting to ₹2,892 crore.

YES Bank had then said it had issued a demand notice on May 6, 2020 to Reliance Infrastructure Ltd under the SARFAESI Act to repay the dues within 60 days, which the latter failed to repay. “The bank had taken possession of the building last year. Now the two sides have agreed to formalise this into a sale deal,” said a source.

Prior to this sale, ADAG is estimated to have an exposure of about ₹4,000 crore to YES Bank. Reliance Infra has now closed three asset sale deals in the last 90 days as part of its debt reduction plan. This includes the Delhi-Agra toll road, Parbati Koldam transmission company, and now the Reliance Centre.

Published on April 01, 2021

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