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Rs 6,000 crore residential project has been taken over by Yes Bank as Sumer Radius Realty defaults on loan

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Yes Bank

The redevelopment of the prime 5-acre Willingdon Catholic Colony located on S V Road is believed to be the most expensive residential gated community in the western suburbs.

An estimated Rs 6,000 crore residential project, Avenue 54, in Santacruz has been taken over by Yes Bank after the developer, Sumer Radius Realty, failed to repay a Rs 479 crore loan.

The redevelopment of the prime 5-acre Willingdon Catholic Colony located on S V Road is believed to be the most expensive residential gated community in the western suburbs.

Last Friday, Yes Bank issued a ‘possession notice’, stating it had taken possession of the property; the borrower was to repay the amount with interest and other charges in July 2019. It warned the public not to deal with the property. The project is being jointly developed by builder Sanjay Chhabria of Radius Developer and Ramesh Shah of Sumer Group.

The troubled project will come as a shock to 154 people who booked luxury apartments in the under-construction towers, paying on an average, a hefty Rs 55,000 a sq ft.

Original tenants had moved court over redevelopment

Six towers are coming up consisting apartments with four to six bedrooms each. A couple of brokers had opened offices in London to entice potential buyers, TOI has learned.

A spokesperson for Radius Developers told this newspaper on Sunday: “We are aware that this has been a testing time for our partners Sumer Group in the project, causing Yes Bank to notify for possession of their part. However, we would like to say that the project continues with Radius fully committed to its part along with Yes Bank. In fact, we are now in extended talks with international investors for our next round of fundraising which is looking positive.”

When contacted, Ramesh Shah of Sumer Group refused to comment.

The 10 lakh sq ft project has six towers. According to information uploaded on the MahaRera website, Tower 1 has 20 flats (six-BHKs) with not a single unit sold. Tower (1B) has 84 flats of which only three have been booked. Tower (1C) has 63 flats of which 17 are shown booked. Tower 2 has seen maximum sales with 68 of the 119 apartments booked so far. Tower 3 has 117 flats of which 50 are booked. In Tower 4, 16 of the 64 flats have been sold.

The project was embroiled in a major controversy when some of the original tenants of the colony protested the redevelopment and approached the court. Most of the residents were paid off by the builder to move out.

In 2009, the Society executed a conveyance deed selling the property to Sumer for Rs 70 crore. “This was on the condition that the 161 allottee members would get flats measuring 600 sq ft on the property. The delivery schedule for the original residents was to be simultaneous along with any free sale flats from the builder,’’ said Savio Sequeira of the society.

“The mala fide intentions of the developer to deny the rights and fulfil its obligations to the allottees is evident by the fact that the approved plans for Avenue 54 on the RERA website do not show a single flat measuring 600 sq ft,’’ he added.

Sequeira said the society filed a suit in the high court for specific performance of the conveyance in August 2018. “The matter is still being heard,’’ he said.

Source : TNN

(The story has been published from a wire feed without any modifications to the text)

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