Yash Birla sells another property
When investors are banging on your door, the safest bet is to sell off a property and raise funds. It's a plus if it's a property that's not been in use. It seems that Yash Birla, the troubled non-executive chairman of Birla Power, is doing just that.
The real estate market is abuzz with news that a 800-sq-mts property owned by Zenith Birla, with interests in steel manufacturing, in Thane, has been sold. Real estate sources say that the property in Vedant Commercial Complex in Thane's Vartak Nagar, still retains Zenith's board. However, the office moved out some time in 2014 and, ever since, the second floor — where the Zenith office was — has been locked. This was the firm's corporate office.
A real estate agent who operates in the area, said on condition of anonymity, "The deal has taken place and a token amount has been exchanged. It will continue to be used as an office." With the current rate of Rs 15,000 per sq mts (or above), the sale is expected to fetch Birla around Rs 10 crore.
Zenith Birla used to occupy an office on the second floor of Vedant Commercial Complex in Thane's Vartak Nagar. Pics/Ankoor Anvekar
While speculation remains that Birla is selling properties to pay creditors who had invested in Birla Power Solutions, he told SUNDAY mid-day that the two firms have nothing to do with each other. "The Thane property belongs to Birla Zenith. It was lying vacant and, hence, it's being sold. This has nothing to do with creditors of Birla Power Solutions," he added.
In the meanwhile, the 48-year-old has claimed that of the R60 crore that he owed to his creditors, R54 crore has been repaid. To raise funds for the same, he has liquidated some of his other properties.
Last August, the Karnataka Bank had attached Birla's prime property at Nepean Sea Road — a 2,000 sq-ft 3BHK apartment worth Rs 13 crore. 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, had claimed that the company was paying off its investors before it focuses on its personal properties.