KOCHI: THE investors of luxury apartment Dewa Projects on Marine Drive, who are fighting a legal battle after 13-bank consortium took hold of the project, have moved the National Company Law Tribunal (NCLT) to ensure they get interest on their original investments, on par with what lenders received. Bank consortium, led by Union Bank of India, took control of the project after the Kuwait-returned promoter defaulted.
Jacob Xavier Kayalakakath, secretary of Dewa Investors’ Association, said the Association has moved NCLT, which recently set up its branch in Kochi, with a plea that the investors are liable for getting the interest rate same as the bank consortium. “So far, the banks have collected Rs 520 crore as interest and sales proceeds of its assets against the advance of Rs 225 crore. Hence we should also get the interest at the same rate for our Rs 33.5 crore principal amount,” he said.
After promoter K Venugopalan Nair defaulted, banks auctioned two plots of the Dewa Projects in Marine Drive - 4.8 acres to MA Yusuffali of Lulu Group and another 11.9 acres to Khondwa Projects LLP. While Lulu paid Rs 123.77 crore, Puravankara bought the property via the bank auction for Rs 203 crore.
A settlement eluded on the remaining seven-tower-project, where construction began on a 6.23-acre plot for 605 apartments after the promoter challenged a deal to auction the property by the bank consortium. Investors gave amount ranging from Rs 30 lakh to Rs 1 crore for the apartments, before the default on loan repayment brought the project to a halt. “There are about 101 investors, but the Dewa Investors’ Association is arguing the case for about 60-65 investors, including those who may have given advance payment for two or even three apartments,” said Jacob Xavier.
