Mumbai News: Edelweiss ARC Issues EOI Seeking Investors, Developers For 1.7-Acre Khar Real Estate Project

Mumbai: Edelweiss ARC has issued EOI (expression of Interest) seeking investors & developers for development of Khar real estate project of 1.7 acres. The Project is currently under construction and Invitation is sought for completion of the balance project.

This Prime real estate project is located within less than 1 km proximity from Linking Road and within 2-3 kms from Bandra Railway Station, Khar Railway Station & other colleges and hospital.

Edelweiss Asset Reconstruction Company Limited (EARC) pertaining to this real estate project had issued a formal demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, to real estate firm Joy Builders and its guarantors for an outstanding liability totaling ₹827.36 crore.

The demand notice has been addressed to Joy Builders (Borrower), Bhavin J. Soni (Guarantor and Pledgor), and others — all listed as legal heirs of late Jayant Soni, a co-guarantor.

The liability stems from two financial facilities originally extended by ECL Finance Limited on March 26, 2019 — a Rs 150 crore term loan and a Rs 100 crore revolving credit facility, totaling Rs 250 crore. These loans were secured through a mortgage and a suite of security documents including personal guarantees, pledge agreements, and an escrow arrangement.

According to the notice, the borrower defaulted despite receiving multiple extensions and repayment deferments — first during the COVID-19 pandemic (October 2020) and then through two subsequent rescheduling efforts in September 2021 and August 2022.

As per the most recent account statement dated April 30, 2025, the total outstanding amount is ₹827,36,65,586, which includes the principal dues, accrued interest at 16% p.a., default interest at 1% per month, milestone defaults, and additional penal charges. The loan account was officially classified as a Non-Performing Asset (NPA) on June 30, 2023.

The notice outlines EARC’s intent to enforce the security interest if the outstanding dues are not paid within 60 days. Following which the secured assets include entire project land and development rights at Joy Legend in Khar (West). Movable assets associated with the project including machinery, book debts, tools, and accessories. Receivables and escrow accounts related to the Joy Legend project etc.

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The notice explicitly prohibits any transfer, lease, or encumbrance of the secured assets or related properties without prior written consent of EARC.

EARC stated that the issuance of this statutory demand notice does not preclude it from initiating civil or criminal proceedings or pursuing further legal remedies against the borrower and guarantors to recover the outstanding dues,as per the public notice.