There seems to be some trouble in store for the Chairman and Managing Director of Nirmal Lifestyle, Dharmesh Jain. The Mumbai branch of Debt Recovery Tribunal (DRT) has directed him to not sell any of his property and to disclose all his moveable and immovable assets under an oath within a month.
This was after a petition filed by the IDBI Trusteeship Services limited on behalf of its three clients- Kotak Investments Advisors Ltd, INQ Holding LLC and Equity Trust (Jersey) Ltd. The petitioner is looking at recovering dues worth Rs. 377 crore from the developer.
The order was passed on 28th November by V.N. Lothey Patil who is the presiding officer of DRT 2, Mumbai.
“There is a serious apprehension that the defendants may create third party interests in the properties and in that contingency it will cause a great prejudice to the applicant, because the loan is sanctioned against the guarantee of the defendant and guarantee is accepted because of the net worth”, states the order of presiding officer Patil.
The petition also states that default notice was sent under Debenture Description Agreement on 7th July as well as on 24th October but there was no response.
The DRT order also states that Dharmesh Jain cannot leave the country without giving a one week’s advance notice to the petitioner.
We contacted Nirmal Lifestyle management and they responded via this email statement produced below.
"We are in active conversation with the lenders and are confident about resolving these issues in the time frame committed to the lender. Please note that lenders/fund is well secured since the property is valued at Rs 1800-2000 crs. Nirmal greatly value each and every lending partner and as far as this particular matter is concerned we assure a smooth exit to the lender. Nirmal is committed to delivering all its committed projects and we are confident of delivering most of under construction projects over the next two years. Our deliveries are lined up almost every quarter starting 2017".
Although the restrictions and disclosure are applicable only to his personal property, industry experts believe this will have an impact on his projects as well.
“This case clearly points out that his finances are stressed. This means it will hamper his ability to execute his projects”, says an industry observer on condition of anonymity.
Meanwhile, according to the data from Liases Foras, there are at least 8 projects of Nirmal Lifestyle which are delayed:
|Project Name||Location||Supply (Units)||Start Date||Initial End Date||Revised End Date|
|US Open||Mulund (W)||810||Nov-07||Jan-19||Dec-20|
|Sports City||Mulund (W)||486||Jan-13||Dec-17||May-18|
|Nirmal Olympia||Mulund (W)||488||Jan-14||Jun-18||Dec-19|
|Panorama Apartments||Mulund (W)||61||Dec-13||Dec-17||May-18|