An employee holds a stack of electronic payment receipts and Indian Rupee banknotes at a Bharat Petroleum Corp. fuel station in Bengaluru, India (Photographer: Dhiraj Singh/Bloomberg)  

Jai Corp Claims Rs 510 Crore From Everest Group

Two entities linked to Jai Corp Ltd., promoted by Anand Jain of Reliance Industries Ltd., have claimed Rs 510 crore from the promoters of the city-based realty developer Everest Group for their alleged failure in developing a project in the megapolis.

The Jai Corp entities came out with a public statement in the newspapers on Tuesday detailing how projects went into arbitration and claimed that Everest group promoters—Kishor Shah, Vimal Shah and Nainesh Shah—are yet to pay the sums awarded to them by an arbitration tribunal earlier this year.

The payments were to be made by June 7 but did not take place, as per the public notice, issued by Urban Infrastructure Venture Capital Fund and Urban Infrastructure Real Estate Fund.

The public notice said first instance involves a payment of Rs 275 crore with regard to the development of the erstwhile Bradbury Mills Property at Mahalaxmi in central Mumbai, where a panel consisting of a former Chief Justice of India had on May 4 directed the Everest group promoters to pay Rs 275 crore by June 6.

Development at this project was to be carried out jointly by Vengas Realtors, a special purpose vehicle created by the Everest group and Jai Corp entities, and Everest Fincap which is now known as Money Magnum Nest.

Similarly, in respect of another investment with the Everest group promoters, an arbitral panel comprising two retired Supreme Court judges and a retired CJI passed an award to pay Rs 235 crore by June 26, it said.

"Total amount payable is over Rs 510 crore," the notice said and warned that Jai Corp entities will begin appropriate legal proceedings against the Everest group promoters if the money is not paid.

Bloomberg Quint

Add BloombergQuint App to Home screen.