YES Bank issues possession notice for Reliance Infra’s properties

Private sector lender has issued a possession notice for several properties belonging to Reliance Infrastructure including its headquarters after the company failed to repay its debt worth Rs 2,892 crore.

The properties include the corporate headquarters of Reliance Infrastructure in Santa Cruz East and two floors in Nagin Mahal, Churchgate, Mumbai.

In a public notice dated July 22, said it has issued notice to Reliance Infrastructure under the SARFAESI Act to recover its dues and after the company failed to repay the debt, it has issued the possession notice and warned public from dealing with these peroperties. has an exposure of Rs 12,000 crore to Anil Ambani group. A host of other companies including DHFL, Crompton Greaves, Zee group have failed to repay debt to YES Bank.

In May this year, the auditor of YES Bank had pointed out breaches of several Reserve Bank of India norms and loan covenants by the private bank in financial year ended March 2020 which, it said, impacted the bank’s ability to continue as a going concern. The standalone financial results stated that the bank had to made an additional provision of Rs 15,422 crores for the period ended December 2019. The bank’s former MD and CEO, Rana Kapoor is now in judicial custody after the CBI and ED alleged bribery in DHFL case.

The bank, now under a new management, had to be bailed out by the government owned State Bank of India and Life Insurance Corporation of India with a fund infusion of Rs 10,000 crore. Last week, it raised Rs 15,000 crore from selling new shares to a group of investors at the rate of Rs 12 a share. On Wednesday, YES Bank’s shares fell below the FPO price to Rs 11.75 a share.

Interestingly, Ambani has already admitted in the UK High Court that his net worth is zero and will not be able to pay dues of another group firm, Reliance Communications. But the UK High Court has asked Ambani to pay $717 million to the Chinese or face action.

In June, the State Bank of India moved the National Company Law Tribunal (NCLT) Delhi bench to enforce personal guarantees of Ambani to recover its dues.

SBI’s move comes after almost two years of Reliance Communications was first sent to the NCLT (National Company Law Tribunal) for recovery of dues worth Rs 46,000 crore by the Indian creditors.

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