Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFESI) Act, the action has been taken by the lender after Reliance Infrastructure failed to pay dues of Rs 2,892 crore.
Issuing a notice on Wednesday, Yes Bank in Wednesday’s newspaper stated that they would be seizing Reliance’s two offices due to failure to pay the due which will include its ADAG headquarters in Mumbai as well.
With most of it having defaulted debt obligations, quite the number of ADAG companies are currently undergoing insolvency proceedings. How, the chairman - Anil Ambani has stated that the company is committed to pay its dues through sale of its assets.
The spokesperson said the statement, “He reiterated that the Reliance Group's entire exposure to Yes Bank is fully secured and transacted in the ordinary course of business. All transactions between the Reliance Group and Yes Bank are in compliance with law and financial regulations."
"Mr Ambani also clarified to the agency that the Reliance Group has no direct or indirect exposure to Mr Rana Kapoor or his wife or daughters, or any entities controlled by Mr Rana Kapoor or his family," the spokesperson added.
Requesting Reliance to make payment within 60 days, the aforementioned bank had sent a demand notice to the Reliance infrastructure on 6th of May. However, due to non-payment, the bank was forced to take possession of the two properties.
In an advertisement, Yes Bank stated, “The borrower having failed to repay the said amount, notice is hereby given to the borrower and to the public in general that the undersigned has taken possession of the property in exercise of powers conferred on him under section 13 (4) of the said Act, read with Rule 8 of the said rules on 22nd day of July, 2020.”
Finance Minister Nirmala Sitharam had told in a press conference that not only Reliance, but other companies such as Vodafone, Essel, DHFL, ILFS are also among those corporates who are under stress at the current juncture.