Edelweiss Asset Reconstruction Company Limited (EARC) has issued an Expression of Interest (EOI) to invite investors and developers to take over and complete a stalled real estate project in Khar (West), Mumbai. The 1.7-acre project, known as Joy Legend, is located in a prime area, within less than 1 km proximity to Linking Road and 2-3 km from Bandra Railway Station, Khar Railway Station, and other colleges and hospitals.
The project was originally undertaken by Joy Builders, which had borrowed ₹250 crore from ECL Finance Limited in 2019. However, the borrower defaulted on the loan, despite receiving multiple extensions and repayment deferments. The outstanding liability now totals ₹827.36 crore, including principal dues, accrued interest, default interest, and penal charges. The loan account was classified as a Non-Performing Asset (NPA) on June 30, 2023.
EARC has issued a formal demand notice to Joy Builders and its guarantors, seeking payment of the outstanding dues within 60 days. The notice warns that if the dues are not paid, EARC will enforce its security interest, which includes the entire project land and development rights, movable assets, receivables, and escrow accounts related to the project. The notice also prohibits any transfer, lease, or encumbrance of the secured assets without prior written consent of EARC.
The EOI issued by EARC invites developers to take over the project and complete it. The project is currently under construction, and the new developer will be responsible for completing the balance work. The EOI is a opportunity for developers to acquire a prime real estate project in a desirable location and complete it to its full potential.
The issuance of the demand notice and the EOI are part of EARC’s efforts to recover the outstanding dues from Joy Builders and its guarantors. EARC has stated that it may initiate civil or criminal proceedings or pursue further legal remedies to recover the dues, if necessary. The development of the Joy Legend project is expected to be a significant opportunity for developers, and the EOI is expected to attract interest from several major players in the real estate industry.