Yes Bank has taken over the headquarters of Anil Ambani group suburb Santacruz due to non-payment of outstanding debt of Rs 2,892 crore. According to a notice given by Yes Bank on Wednesday, the bank has also taken possession of two flats in South Mumbai due to Reliance Infrastructure not paying dues.
Almost all the companies of Anil Dhirubhai Ambani Group (ADAG) are operating from the Santa Cruz office ‘Reliance Center’. However, the financial position of the group companies has deteriorated considerably over the past few years. Some companies have gone bankrupt, while some have had to sell their stake.
Yes Bank said that it had given notice to Reliance Infrastructure on May 6 to repay the outstanding dues of Rs 2,892.44 crore. Despite 60 days notice, the group could not repay the arrears. After which the bank took possession of all three properties on 22 July. The bank has warned the general public not to do any transaction regarding these properties.
The ADAG group wanted to lease the same headquarters last year to raise resources to pay off the debt. It is headquartered in 21,432 square meters. Two other properties are in Nagin Mahal in South Mumbai. Both these flats are of 1,717 sq ft and 4,936 sq ft respectively. It is noteworthy that one of the major reasons for the bad loans of Yes Bank is the loans given to ADAG group companies.
The high level of non-performing assets (NPAs) has led to a tie-up with State Bank of India-led banks by infusing Rs 10,000 crore of capital into the bank and bringing it out of the crisis. Prior to the relief package for the bank, the government and the Reserve Bank dissolved the board of directors of Yes Bank in March. Also appointed the new Chief Executive Officer (CEO) and Board of Directors of the bank.
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