Dewa promoter vows to foil moves to usurp land

KOCHI: Venugopalan Nair, CMD of Dewa Projects, whose 16 acres of project land  at Marine Drive here was sold off by a consortium of 13 banks to LuLu Group and Purvankara group for Rs 310 crore  following default of the loans by the NRI entrepreneur, has come out against the banks saying his hands are clean and "neither the banks nor some vested interests can hijack the property at a low price".

Nair told Express the consortium led by the Union Bank of India had received Rs 493 crore, including the Rs 183 crore paid by Dewa Properties, for an investment of Rs 273 crore and an entrepreneur who was trying to implement a mega project is "destroyed completely without an opportunity to rebound".Recently, the banks auctioned the two plots of Dewa Projects — 4.8 acres to M A Yusuffali of LuLu Group and another 11.9 acres to Puravankara Projects — for Rs 310 crore.

Not contend with this, the banks, Nair said, have now commenced procedure for e-auction of 18 of his personal properties which have a market value of Rs 150 crore for a measly Rs 60 crore.The banks are also in the process of conducting an e-auction of 6.32 acres (Plot C5) where construction activities are under way.  Though the land is worth Rs 600 crore, the banks are valuing it at just Rs 220 crore, he said.

So, on an investment of Rs 273 crore, the 13-member bank consortium is aiming to achieve about Rs 773 crore, he said, pointing out the Rs 2,000 crore market value assets have been put on sale by banks through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), which allows banks and other financial institutions to auction residential or commercial properties to recover loans.

"In the history of NPAs (non-performing assets) in India, this could be a unique case where the borrower is not a wilful defaulter and the project assets are at a premium location and  of very high value," Nair said, and alleged the project became an NPA "only because of the bankers' faults in fulfilling the commitments".
"The truth is  none of the PSU banks had ever funded 11 lakh sq ft single project development in Kerala and could not implement timely funding measures after project approval," he said.

"We are confident if the banks release the sanctioned amount of Rs 150 crore and with the continued support of 105 flat purchasers who have already invested by way of advance, we can successfully complete the 11 lakh construction and turn the project bankable," Nair said.

Claiming he is a victim of injustice, he said the promoter group invested Rs 252 crore and lost all properties and 18 personal properties while the banks which invested only Rs 273 crore are getting Rs 773 crore.

Nair alleged the banks backtracked on all assurances after Dewa brought funds and standardised accounts.
"It is not out of place to mention  in spite of these reverses while Dewa was struggling to keep the project afloat none of the 11 PSU banks approved even  individual housing loan to the flat purchasers," he said.