Problems for industrialist Yash Birla escalate as the Karnataka Bank attaches his prime property in Nepean Sea Road, a 2,000 sq ft, 3BHK flat worth Rs 13 crore, according to realtors. The bank was compelled to act after the Yash Birla group failed to return the loan that Birla Research and Life Sciences took a couple of years ago. The group, however, claims that the company is first paying off its investors and will then focus on its personal properties
Problems for industrialist Yash Birla have escalated with the Karnataka Bank attaching his prime property, a three BHK flat with 2,000 square feet built up area and worth R13 crore, as quoted by realtors. The flat is located at Ashoka Apartment in Nepean Sea Road. The bank took this action as part of its recovery process after the Yash Birla group failed to return the loan that its company Birla Research and Life Sciences had taken three-four years ago.
The flat under question is at Ashoka Apartments at Rungta Lane, Nepean Sea Road. Pic/Emmanual Kharbari
What exactly happened
As per sources, Birla’s company had taken a loan of Rs 14.5 crore and as surety they had kept their flat at Ashoka Apartment with the bank. But the firm failed to repay the loan. Apparently Anant (Vardhan) Pathak, a top executive of the Yash Birla group who was arrested earlier this year for possessing cocaine, occupied this flat.
The flat is situated on the fifth floor of the building, which is more than four decades old, and is located on Rungta Lane. According to bank sources, they are expecting Rs 14.85 crore from the auction or sale of the flat.
A senior bank officer, who didn’t wish to be named, told sunday mid-day, “Nearly three months ago, we had sent a notice to the Birla group stating that attachment procedures against their property has been initiated. They had sought some time, but the bank had not given them an official confirmation. We are carrying out the recovery process while the whole issue is now being dealt legally.”
Post the first notice, the Yash Birla group had sought time till mid-August to do a one-time settlement with the bank.
However, property brokers from Malabar Hill claim that the flat can fetch only Rs 13 crore. Gopal Maheshwari, a realtor, said, “The building is very old now and doesn’t have too many amenities on offer except a lift.”
The other side
According to senior officials from Yash Birla group, the company is first paying off investors of Birla Power Solutions Rs 214 crore of fixed deposits and inter-corporate deposits and will then focus on its personal properties.
A spokesperson from Yash Birla Group said, “The matter is subjudice. There is no date fixed by the court for payment. The Karnataka Bank has settled our account and we have to formalise the same and file the court’s consent for the same. The bank and our group have been in constant touch over this issue and are working on a resolution. Though the first payment has not been made to them as yet, the group has all intent to pay the agreed amount in the decided time frame.”