Court Takes Possession of Punia Group's Bungalow Over 5 Crore Loan Default
A Mumbai court has taken possession of a bungalow at Madh Island in Malad West belonging to the Punia group of companies under the SARFAESI Act for defaulting on a loan of nearly Rs 5 crore.
Punia GroupPiramal Capital And Housing Finance LtdSarfaesi ActLoan DefaultMumbaiReal Estate MumbaiJun 17, 2024
The Punia group had created a security interest in its asset, L A Masia bungalow on Marve Road, in favor of Dewan Housing Finance Corporation as part of financial assistance provided. However, the group defaulted on the repayment, leading to the classification of the account as a non-performing asset in December 2019.
Demand notices were issued in January 2021 under the SARFAESI Act, requiring the respondents, including Dinesh PunIa, Oriental Air and Ship Services, Mama Punia, Manisha Punia, and Mahesh Punia, to repay the outstanding amount of Rs 4.8 crore within 60 days. Despite several notices and paper publication, the respondents failed to comply with the payment requisitions within the stipulated period.
In February, Metropolitan Magistrate Jaywant Yadav noted that it was neither practicable nor feasible for the subordinate officers of the court to take possession of the secured assets expeditiously, given the high volume of applications under Section 14 of the SARFAESI Act and the workload of the officers. Yadav then appointed Advocate Sunil Pandey as court commissioner and directed him to take possession of the bungalow.
Last week, Pandey informed the metropolitan magistrate that he and his team had encountered resistance from Punia's security personnel, necessitating the use of police force to take possession of the bungalow.
Piramal Capital and Housing Finance Ltd is a leading housing finance company in India, providing financial assistance to individuals and companies. The company, formerly known as Dewan Housing Finance Corporation Ltd, has been at the forefront of providing affordable housing solutions in India.
The SARFAESI Act, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, is a law that allows banks and financial institutions to recover debts from defaulting borrowers.
Frequently Asked Questions
What is the SARFAESI Act?
The SARFAESI Act, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, is a law that allows banks and financial institutions to recover debts from defaulting borrowers.
Who is the owner of the bungalow at Madh Island?
The bungalow at Madh Island is owned by the Punia group of companies.
How much loan did the Punia group default on?
The Punia group defaulted on a loan of nearly Rs 5 crore to Piramal Capital and Housing Finance Ltd.
What action was taken against the Punia group?
The court commissioner took possession of the bungalow at Madh Island under the SARFAESI Act for defaulting on the loan.
Who appointed Advocate Sunil Pandey as court commissioner?
Metropolitan Magistrate Jaywant Yadav appointed Advocate Sunil Pandey as court commissioner to take possession of the bungalow.
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