3 floors of builder’s Bandra HQ sealed for Rs 45 crore loan default

MUMBAI: In a major blow to developer RNA Corp, court commissioners appointed under the directions of the Additional Chief Metropolitan magistrate sealed three floors of its headquarters in Bandra (East) on Saturday for defaulting on repayment of Rs 45 crore to Dena Bank out of a Rs 65 crore loan. The action was taken under the Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest (SARFAESI) Act, 2002 after the developer failed to pay back the loan taken in 2012.

Additional metropolitan magistrate Laxmikant Bidwai appointed five lawyers-—Sunil R Pandey, Manoj R Bachate, Abhishek S More, Pradnya S Surve and Sapna H Jagtap—as commissioners of court and directed them to seal the sixth, seventh and eighth floors of RNA’s head office at RNA Corporate Park, Sant Gyaneshwar Marg, Kalanagar, Bandra (East).

The five advocates implemented the magistrate’s directive with the help of local police and officials of Dena Bank. “We had a tough time sealing the property as there was strong objection from the builder, but we had to comply with the court's order,” said Sunil Pandey, head of the court commissioners team.

Sources said the court will auction the property to recover the dues. According to sources, Dena Bank had filed an application saying it had granted a total financial assistance of Rs 65 crore to late Anil Agarwal and Maharashtra Theatres Private Limited was the guarantor.

Three others who have been made respondents are Saranga Aggarwal, Gokul Aggarwal, Anubhav Aggarwal and Nehau Aggarwal and the heirs and legal representatives of the late Anil Aggarwal, sources said. An official explained that the Supreme Court and Bombay high court have ruled that notices have to be issued to borrowers and guarantors when an application is filed under Section 14 of the SARFAESI Act.

“The Dena Bank had declared the RNA Corp's loan as a non performing asset (NPA) and issued a notice under the SARFAESI Act demanding repayment of an outstanding amount of Rs 45 crore. The company apparently failed to respond within the stipulated period of 60 days forcing the bank to take legal action,” a source said.