Edelweiss ARC Seeks Investors and Developers for 1.7-Acre Khar Real Estate Project
Edelweiss ARC has issued an Expression of Interest (EOI) to attract investors and developers for the completion of a 1.7-acre real estate project in Khar, Mumbai. The project, currently under construction, is strategically located near key infrastructure and educational institutions.
Edelweiss ArcKhar Real EstateMumbai Real EstateJoy BuildersNonperforming Asset NpaReal Estate NewsJun 27, 2025
The project is currently under construction, and Edelweiss Asset Reconstruction Company Limited (EARC) has 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 ₹150 crore term loan and a ₹100 crore revolving credit facility, totaling ₹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% per annum, 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 this, the secured assets include the 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, are also part of the security. Receivables and escrow accounts related to the Joy Legend project are included as well.
The notice explicitly prohibits any transfer, lease, or encumbrance of the secured assets or related properties without prior written consent from 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.
This development presents a significant opportunity for investors and developers to take over a prime real estate project in a highly sought-after area of Mumbai. The strategic location and potential for high returns make this an attractive proposition for those looking to enter the Mumbai real estate market.
Frequently Asked Questions
What is the size of the real estate project in Khar?
The real estate project in Khar, Mumbai, is 1.7 acres in size.
Who is issuing the Expression of Interest (EOI) for the Khar project?
Edelweiss Asset Reconstruction Company Limited (EARC) is issuing the Expression of Interest (EOI) for the Khar real estate project.
What is the total outstanding liability of Joy Builders?
The total outstanding liability of Joy Builders, as of April 30, 2025, is ₹827,36,65,586, which includes principal dues, accrued interest, default interest, and additional penal charges.
When was the loan account classified as a Non-Performing Asset (NPA)?
The loan account was officially classified as a Non-Performing Asset (NPA) on June 30, 2023.
What are the secured assets mentioned in the demand notice?
The secured assets include the entire project land and development rights at Joy Legend in Khar, movable assets like machinery and book debts, and receivables and escrow accounts related to the project.
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