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ICICI Bank takes possession of Mantri Developers' corporate office

ICICI Bank takes possession of Mantri Developers' corporate office

ICICI Bank has taken possession of the corporate office of Mantri Developers on Vittal Mallya Road in Bengaluru due to non-payment of dues, as a report on August 8.

The office, Mantri House, is spread across 30,000 sqft and is close to landmark properties such as UB City Mall and JW Mariott hotel. ICICI said it has taken possession under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfesi).

The bank issued a demand notice in November asking the borrower, Shore Dwellings Pvt Ltd (formerly known as Mantri Dwellings Pvt Ltd), to repay about Rs 53.6 crore within sixty days of receipt of the notice. Having failed to repay the amount, the bank has taken possession.

"The company is engaged with the bankers to find a suitable way out to resolve the issue amicably and get reschedulement done at earliest, so that the NPA and possession notice issue get withdraw," Mantri Developers' Chief Financial Officer S Baaskaran said in a statement to TOI.

The company also said it had given the corporate office as additional collateral security against a project which was developed in Pune. "The project has seen good sales at the beginning and has sold 32% of the total project. However, due to prevailing market conditions for the last twelve months the sales could not happen as per the original projections and hence sales milestone condition of bank could not be fulfilled, because of which the bank stopped disbursing any further money," Mantri added.

Mantri is a prominent developer in Bengaluru, but in the last few years the company has run into trouble with regulators over the location of certain properties. TOI reported earlier this year that Prestige and RMZ Corp have formed a joint venture to buy a commercial project from Mantri for about Rs 1,500 crore.

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