Yes Bank puts three Essel Group assets on the block

The private lender aims to recover dues to the tune of `1,500 crore
Yes Bank building. (File photo | EPS)
Yes Bank building. (File photo | EPS)

NEW DELHI:  In an attempt to recover dues worth Rs 1,500 crore, Yes Bank has put prime properties 
belonging to the Subhash Chandra-promoted Essel Group on sale.

According to public notices, the lender has put under the hammer two Essel Infraprojects Ltd- owned commercial properties in Mumbai and one bungalow owned by Essel Group’s RPW Projects Private Limited in New Delhi. Both these properties were mortgaged to Yes Bank for loans taken by the firm. The e-auctions are proposed to be conducted on November 10, 2020.

The bank has set a reserve price of Rs 430 crore for the bungalow located in the Lutyens’ Delhi at Bhagwan Das Road.

This asset is spread over 2.8 acres. The lender took symbolic possession of the property on June 15,. As per the notice issued by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI) Act 2002, Yes Bank is looking to recover dues of over Rs 943 crore.

In a separate notice, Yes bank has invited bids for the sale of two other commercial properties owned by Essel Infraprojects in Mumbai to recover dues of over Rs 556 crore.

The bank has set a reserve price of Rs 10.5 crore for each of these properties. Earlier, the Delhi High Court has allowed Yes Bank to auction a property owned by Singh brothers, Shivinder Singh and Malvinder Singh, the former promoter of Fortis Healthcare. The bank had sanctioned two loans of Rs 500 crore and Rs 565 crore 

between 2015 and 2017 to companies controlled by the Singh brothers.

The loans were declared non-performing assets after a default in July 2019.Sources said the new board of Yes Bank is into a recovery spree of bad loans given during the tenure of Rana Kapoor.

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