Mordani Group vs IIFL Finance: High-Stakes Real Estate Dispute in Mumbai
A public spat has erupted between Mumbai-based developer Mordani Group and IIFL Finance Ltd., led by billionaire Nirmal Jain, over a December 2024 framework agreement. Both parties have issued a series of public notices, accusing each other of breach of contract and misconduct.
Mordani GroupIifl FinanceReal Estate DisputeMumbaiNirmal JainReal Estate NewsSep 03, 2025
The sequence began on 27 August 2025, when Mordani Group issued a public notice stating that under the December 2024 framework agreement, it had substantially complied with its obligations, including the transfer of valuable redevelopment projects. In return, IIFL was to settle the group’s outstanding loans and obligations. Mordani alleged that IIFL failed to honour its side of the agreement and instead initiated frivolous proceedings. The notice cautioned financial institutions, developers, and others against entering into any dealings with Nirmal Jain or entities represented by him.
On 1 September 2025, IIFL Finance hit back with its own public notice, calling Mordani’s allegations “completely baseless, frivolous, vexatious, and a deliberate suppression and misrepresentation of material facts.” IIFL asserted that Mordani itself had breached the December 2024 agreement, “including but not limited to failure to hand over possession of the properties” referred in the said agreement, leading to its termination, and stressed that related disputes were sub-judice.
The IIFL notice further highlighted that Section 95 insolvency petitions had been filed against Mordani Group promoters Kanayalal Mordani and Kumar Mordani, with the National Company Law Tribunal (NCLT), Mumbai appointing resolution professionals on 23 July and 30 July 2025. It urged the public to exercise caution in dealings with the Mordani Group.
A day later, on 2 September 2025, Mordani Group doubled down with another notice, refuting IIFL’s version of events and reiterating that it had complied with the framework agreement. Once again, the developer warned the public and counterparties against transactions with Nirmal Jain and related entities.
NCLT cause lists show C.P.(IB)/259(MB)2025 — IIFL Finance Ltd. vs. Kumar Mordani listed in March 2025, alongside related matters under Section 95 of the Insolvency and Bankruptcy Code (IBC), which allows creditors to initiate insolvency resolution against personal guarantors to corporate debtors. Such petitions trigger an interim moratorium and the appointment of a resolution professional before admission.
IIFL Finance, a large NBFC, has faced regulatory scrutiny in recent years. In March 2024, the RBI barred it from sanctioning new gold loans citing supervisory concerns, a ban that was lifted in September 2024 after compliance improvements.
With Mordani warning against dealings with IIFL and IIFL warning caution with Mordani, the battle has now escalated into a war of public messaging. Until a court pronounces on the underlying dispute, these remain competing claims and do not by themselves establish wrongdoing.
Frequently Asked Questions
What is the main issue between Mordani Group and IIFL Finance?
The main issue is a dispute over a December 2024 framework agreement. Mordani Group claims it fulfilled its obligations, while IIFL Finance alleges that Mordani breached the agreement.
What actions did Mordani Group take in the dispute?
Mordani Group issued public notices on 27 August 2025 and 2 September 2025, stating it had fulfilled its obligations and warning against dealings with IIFL Finance and Nirmal Jain.
What is IIFL Finance's stance on the dispute?
IIFL Finance issued a public notice on 1 September 2025, calling Mordani’s allegations baseless and asserting that Mordani breached the agreement, leading to its termination.
What legal actions have been taken in this dispute?
Section 95 insolvency petitions have been filed against Mordani Group promoters Kanayalal Mordani and Kumar Mordani, with the NCLT appointing resolution professionals.
What is the current status of the dispute?
The dispute remains sub-judice, and both parties are engaging in a war of public messaging until a court pronounces on the underlying issues.
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