Yes Bank to auction assets of Gautam Thapar's Avantha Holdings, Oscar Investments
Yes Bank will auction properties of Gautam Thapar's Avantha Holdings and Shivinder and Malvinder Singh's Oscar Investments Ltd in a bid to recover their dues.
 
The sale of immovable assets will take place later in the month under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
 
The auction notice for the borrower, Avantha Holdings Ltd, wherein Avantha Realty was the mortgager, said that the bank has taken constructive possession of the property mortgaged to it for recovery of Rs 548.30 crore.
 
The notice described the mortgaged assets as: "All that office premises bearing Municipal No. B-14 to B-19 on the third floor of B-wing of Shangrilla Apartment, Bund Garden Road, Pune - 411 001, admeasuring approx. about 123.56 sq. mtrs. Built-up area, bearing Survey No. 362, Hissa No. 3/A and Hissa No. 4(pt), situated at 31 Bund Garden Road, Pune under the name of Shangrilla."
 
The loan repayment amount is due since October 31, 2019, along with further interest and cost due to the now restructured private lender from the borrower and mortgager.
 
The notice said that interested parties may inspect the property from July 10 to July 23, between 12 noon to 5 p.m. with prior information to authorised officer.
 
Last date and time of submitting Earnest Money Deposit (EMD) is July 24, up to 5 p.m. and the date of e-auction is July 27 between 11 a.m. to 2 p.m.
 
The auction notice for Oscar Investments Ltd, the borrower and RHC Holding Pvt. Ltd the mortgager, said that immovable assets mortgaged to the bank will be sold on July 20 for recovery of Rs 465.29 crore which is due as on June 29.
 
The reserve price will be Rs 30 crore and Earnest Money Deposit will be Rs 3 crore, it said.
 
The properties mortgaged to Yes Bank are: "Land & building built on land admeasuring 12 Bighas out of Khasra No. 288 (4 Bighas 16 Biswas), Khasra No. 289 (4 Bighas 5 Biswas) and Khasra No. 290 (2 Bighas 19 Biswas) situated in the revenue estate of Village Gadaipur, Tehsil Hauz Khas, Mehrauli, New Delhi."
 
The property will be open for inspection from July 6-17, while the last date to submit the bid along with the EMD is July 18. The e-auction will take place on July 20.
 
Oscar Investments Ltd is promoted by RHC Holding Private Ltd, which is promoted by Malvinder Mohan Singh and Shivinder Mohan Singh.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    veereshmalik

    1 month ago

    Curse of the 3rd generation hits another Indian family business again.

    Ramesh Popat

    1 month ago

    why malvider singh and shivinder singh are not taken to task by Govt
    as they have many such bad dealings?

    tillan2k

    1 month ago

    height of optimism Thapar wold have left assets for him????

    Indian Banks Facing Significant Capital Shortfalls: Fitch Ratings
    Indian banks are likely to require at least $15 billion in fresh capital to meet a 10% weighted-average common equity Tier-1 ratio under a moderate stress scenario, says Fitch Ratings. 
     
    In a research note, the ratings agency says, "This rises to about $58 billion in a high-stress situation where the domestic economy fails to recover from the coronavirus pandemic-related disruption. State banks will require the bulk of the recapitalisation, as the risk of capital erosion at state banks is significantly higher than for their privately owned peers." 
     
    "We expect the majority of the injection to come through in FY21-22, as bad loan recognition has been pushed back by a 180-day regulatory moratorium. However, a clearer picture should start to emerge from December 2020, unless the central bank agrees to a one-time loan restructuring, which would affect the timely recognition and resolution of bad loans," it added.
     
    Fitch says it does not believe the reported performance of Indian banks for the financial year ending March 2020 (FY19-20) adequately reflects the incipient stress caused by the pandemic. It says, "The results are broadly in line with our expectations, but bank balance sheets are yet to feel the impact of India's strict lockdown measures that were implemented by the government from 25 March 2020. Moreover, a meaningful short-term recovery looks unlikely, as the acceleration of new COVID-19 cases threatens the gradual reopening of the economy."
     
    The impaired loan ratios of Indian banks trended down in FY19-20 (FY19-20e: 8.5%) compared with 9.3% recorded in FY18-19, in line with the expectations of Fitch, and driven by fewer fresh impaired loans and continued write-offs about 2% of the loans during FY20. Several public sector banks also returned to profitability due to easing credit costs, but the banking sector's return on assets was low at FY20e of 0.22%, the ratings agency says.
     
    According to Fitch, core capitalisation improved by about 90 basis points (bps) to FY20e at 11.3%, mainly due to a $9 billion government equity injection into state banks coupled with lower growth; which implies high risk aversion among banks, particularly those that are state owned. State banks' core capitalisation, on the other hand was about 350bp weaker than that of private banks, despite the fresh equity, leaving their limited capital buffers susceptible to stress.
     
    Fitch says it expects heightened asset quality and earning pressure for at least the next two years, as disruption to business activity and supply chains, as well as shrinking personal incomes, damage banks' balance sheets. 
     
    "State banks were more vulnerable than private banks coming into the crisis, with weaker loss-absorption buffers, and appear to be shouldering a disproportionate share of the burden in bailing out affected sectors," it added.
     
    Fitch says it sees a well-functioning banking sector as supportive of achieving sustained economic growth of 6%-7%, but without timely and adequate recapitalisation, banks will continue to display heightened risk aversion, adding to India's economic uncertainty. 
     
    "We expect the economy to contract by 5% in FY21, followed by a recovery in FY22, but with considerable downside risk to our forecast," the ratings agency concludes.
     
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    COMMENTS

    tillan2k

    1 month ago

    According to news reports Banks have written off loans of 14/15 Lacs crores and is covered up by recapitalisation ... over and over again , this time media exposure has made thing difficult .. It is written off loans which found its way in to the pockets of touts, fixers and NETAS and Lamborghini lootyens Baboo unsold real estate is emblematic of the deeds

    Pramod Mittal, Who Once Spent £50M on His Daughter's Wedding is Declared Bankrupt with £130M Debt: Report
    Pramod Mittal, younger brother of global steel magnate Lakshmi N Mittal, is again in the news. Pramod Mittal, one of Britain's wealthiest men who spent £50 million on his daughter's wedding has reportedly been declared bankrupt with debts running to more than £130 million, says a news report.
     
    According to the report from The Times, "Pramod Mittal, 64, appears to have lost a fortune while becoming embroiled in an investigation into organised crime."
     
    A source told The Times: "They are no longer close and live separate lives. Lakshmi does not see why he should be financially responsible for his brother. This debt has nothing to do with him."
     
    According to the report, Pramod Mittal's bankruptcy stems from his acting as a guarantor in 2006 for the debts of Global Ispat Koksna Industrija d.o.o. (Gikil), a Bosnian producer of coke used in steel manufacturing.
     
    He was pursued by London-based Stemcor when he did not pay $166 million which was owed in 2013. Stemcor went on to separate its non-trading businesses - which included Mr Mittal's guarantee—into a separate company, Moorgate Industries, which was granted the bankruptcy order at the Insolvency and Companies Court, the report says. 
     
    As reported by Moneylife, last year in July Pramod Mittal and his two colleagues were arrested and released in Bosnia after paying a hefty €12.5 million. The release order also mandated an ‘insurance’ of €11 million deposited into a special account until the end of the proceedings. (Read: Pramod Mittal Arrested: Got Away in India, Caught in Bosnia)
     
    He was held for suspicious transfer of nearly €11 million from Lukavac (Bosnia)-based GIKIL, which is a partnership between Global Steel Holdings (GSHL) and Coke and Chemical Conglomerate (KHK) owned by the Government of Bosnia-Herzegovina. GIKIL was set up in 2003 and has over 1,000 employees.
     
    In May 2019, Pramod Mittal got out of another sticky situation in India when his older brother Lakshmi N Mittal bailed him out by paying over $200 million owed to the State Trading Corporation (STC). This helped quash civil and criminal proceedings that had slowly wound their way to the Supreme Court of India.  
     
    Earlier in 2013, despite being a bank defaulter, Pramod Mittal has reportedly spent 60 million Euros (about Rs505 crore) for his daughter’s lavish wedding in Barcelona. (Read: Pramod Mittal spent 60 million Euros on daughter's lavish wedding?)
     
    As reported by Moneylife, during the end 2010, State Bank of India (SBI) gave a fresh loan worth Rs130 crore to Ispat Industries (it was controlled by the Mittals at that time) adjusting Rs30 crore against earlier dues. (Read: SBI helps sick Ispat Industries with fresh money to prevent loan being classified as ‘bad’)
     
     
    You may want to watch this video from Moneylife News Bites
     
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    COMMENTS

    vydehi.ramamirtham

    2 weeks ago

    In the last decade, the unholy nexus between politicians and businessmen is bleeding our economy. The common man on the street has to pay the price for no fault of his. So sad.

    rs235m

    1 month ago

    Is it possible that he has transferred all assets in some one else's name and declare himself as bankrupt to dodge repayment to banks?

    REPLY

    tillan2k

    In Reply to rs235m 1 month ago

    some business men are known to swing called TOPI ferna 9 change identity . in ususl talk they will ask each othr kitni baar topi pheri.. how many time time u have bankrupted . it may mean at least 75 %of bankruptcy amount is in tax havens in personal accounts..

    fnetwork

    1 month ago

    The brothers were never close. I know personally going as far back as 2005. The split up was acrimonius in 1994. The Government of India owned State Trading Corporation as well as SBI are willing co-conspirators. It was STC that initially funded GSHL/PM and gave him credibility whilst LNM successfully dissuaded London and New York banks like HSBC and Citi from any relationships with PM. In the back was former PM Manmohan Singh protecting "his baby STC" once the scandals started to surface as far back as 2009 (you mention the 2010 SBI role)... One Kolkatta newspaper that mentioned "a bag of money given to STC Chairman in 2009" had to retract.
    It is ironic because the late Stemcor Chairman Oppenheimer was also a willing co-conspirator helping PM/Ispat funnel money to fund the Nigeria shenanigans. Apollo Fund, having taken over Stemcor, has no such sentiments and pursued diligently Collection - on the other hand - from the Artful Dodger is another story.
    I have been asked this Q from several law firms recently. "Why did LNM pay STC $200mm in 2019 and also fund the escrow and bail for PM in Bosnia? " The Reason I give is to "keep him out of Jail". HOWEVER PM bankruptcy is a blessing in disguise for LNM. One less worry of a close family member mucking around the world tarnishing the Mittal name and the memory of his late father Mohanlal - from the fruits of whose toil the brothers enjoyed. Even though the split was acrimonius LNM must have great respect for his late Father. I say this because in January 2008 it was at Mohanlal's request that LNM/Arcelor ntervened in the bankrupt Bulgaria steel company Kremikovtzi to "save the family reputation and clean up the mess".

    REPLY

    tillan2k

    In Reply to fnetwork 1 month ago

    reputation jhas not meaning for such industrial houses their weight goes up in direct proportion to number of bankruptcies

    kalemohan

    1 month ago

    THE SAME THING MAY HAPPEN IN CASE OF ANIL AGARWAL-'VEDANTA'INCHARGE.

    Ramesh Popat

    1 month ago

    there will be a long list of globely!
    and many foreign co.s too. plus
    few countries also!

    umeshs62

    1 month ago

    While investing in stock, one has to do a proper due diligence about the promoters. If they are marwaris, Gujaratis, Telugus or Kannadigas then one has to be extremely careful.

    REPLY

    nsputcha

    In Reply to umeshs62 1 month ago

    Umesh(62), mother tongue has no correlation with fraudulent nature in any person. There are black sheep (in every tribe) along with honest business men.

    suketu

    In Reply to umeshs62 1 month ago

    like yr mindset.Stick to good MNC's.Long list we have.

    Meenal Mamdani

    In Reply to umeshs62 1 month ago

    Please, do not target entire communities because of the sins of the few.

    shetyerb

    1 month ago

    Reminds of Mukesh Ambani and Anil Ambani.

    sudhanva

    1 month ago

    yaardo duddu yallammana jaatre

    rs235m

    1 month ago

    All coat suit boot are not gentlemen.

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