Edelweiss takes over DB Group’s project in Mumbai
The crisis in the property market is beginning to hit once powerful developers in the real estate industry. In the latest case, Edelweiss Asset Reconstruction Company (EARC) has taken over a prime Charni Road luxury residential project controlled by Shahid Balwa and Vinod Goenka of D B Group.
D B Group subsidiary, Marine Drive Hospitality, has been unable to pay back a Rs 439-crore loan provided by IFCI and Central Bank of India. The amount was due on May 16. “The borrower/guarantors, having failed to repay the amount, notice is hereby given to the borrower and public in general that the authorised officer of EARC has taken symbolic possession of the property,’’ said the possession notice of November 5.
The 2.2-acre plot is being jointly developed by DB and Pune’s Panchshil Realty, but work on two high-end luxury towers got stalled about six months back over non-payment of loans.