Mordani Group vs IIFL Finance: Mumbai Real Estate Dispute Erupts in Public Notices

Moneylife Digital Team 05 September 2025

Investor Interest

A high-stakes dispute between Mumbai-based developer Mordani group and IIFL Finance Ltd, co-founded by billionaire Nirmal Jain, has spilled into the public domain, with both sides publishing a flurry of notices in newspapers within a week. The fight centres on a 20 December 2024 framework/settlement agreement, under which Mordani claims it fulfilled its obligations while accusing IIFL of reneging on its commitments.

The sequence began on 27 August 2025, when Mordani group issued a public notice stating that, under the December 2024 framework agreement, it had substantially complied with its obligations, including the transfer of valuable redevelopment projects. In return, IIFL was to settle the group’s outstanding loans and obligations. Mordani alleged that IIFL failed to honour its side of the agreement and, instead, initiated frivolous proceedings. The notice cautioned financial institutions, developers and others against entering into any dealings with Nirmal Jain or entities represented by him.

On 1 September 2025, IIFL Finance hit back with its own public notice, calling Mordani’s allegations “completely baseless, frivolous, vexatious and a deliberate suppression and misrepresentation of material facts.” IIFL asserted that Mordani itself had breached the December 2024 agreement, “including but not limited to failure to hand over possession of the properties” referred in the said agreement, leading to its termination, and stressed that related disputes were sub-judice.

The IIFL notice further highlighted that Section 95 insolvency petitions had been filed against Mordani group promoters Kanayalal Mordani and Kumar Mordani, with the national company law tribunal (NCLT), Mumbai appointing resolution professionals on 23 July and 30 July 2025.

It urged the public to exercise caution in dealings with the Mordani group.

A day later, on 2 September 2025, Mordani group doubled down with another notice, refuting IIFL’s version of events and reiterating that it had complied with the framework agreement. Once again, the developer warned the public and counterparties against transactions with Nirmal Jain and related entities.

NCLT cause lists show C.P.(IB)/259(MB)2025 — IIFL Finance Ltd vs Kumar Mordani listed in March 2025, alongside related matters under Section 95 of the Insolvency and Bankruptcy Code (IBC), which allows creditors to initiate insolvency resolution against personal guarantors to corporate debtors. Such petitions trigger an interim moratorium and the appointment of a resolution professional before admission.

IIFL has previously financed Mordani projects, including a Rs60 crore loan for a K Mordani redevelopment project in Bandra (West) about a decade ago, underscoring a long-standing financial relationship that has since soured (https://www.livemint.com/Companies/xhl4Jyv2jRe3CLKaqyL1DM/India-Infoline-Finance-invests-260-cr-in-3-Mumbaiprojects.html)

IIFL Finance, a large non-banking finance company (NBFC), has faced regulatory scrutiny in recent years. In March 2024, the Reserve Bank of India (RBI) barred it from sanctioning new gold loans citing supervisory concerns, a ban that was lifted in September 2024 after compliance improvements (https://www.moneylife.in/article/iifl-finance-barred-from-sanctioning-disbursing-or-selling-gold-loans/73594.html).

With Mordani warning against dealings with IIFL and IIFL warning caution with Mordani, the battle has now escalated into a war of public messaging. Until a court pronounces on the underlying dispute, these remain competing claims and do not by themselves establish wrongdoing.

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