Edelweiss Financial Services Limited (EDELWEISS) addressed media reports regarding an FIR filed by Ecstasy Realty Pvt Ltd, clarifying that Ecstasy is a defaulting borrower, not an investor. As of 31 Dec 24, Ecstasy owes approximately ₹1,683 crores to Edelweiss Asset Reconstruction Company Limited (EARC), including ₹480 crores in principal overdues.
Key points from Edelweiss's statement:
- Ecstasy is a defaulting borrower owing ~₹1,683 crores to EARC, including ₹480 crores principal overdue as of 31 Dec 24.
- The dispute is civil and has been in the Bombay High Court since 2022.
- Edelweiss disbursed ₹600 crores to Ecstasy in Mar 18 through Non-Convertible Debentures (NCDs).
- Interest rates were revised from 14% to 15% in Mar 18 and further to 16.25% in 2019 due to Ecstasy's lower credit rating and market conditions; Ecstasy made payments at revised rates until Mar 22.
- Edelweiss refuted the ₹61.68 crore "siphoning" claim and denied any ₹750 crore fraud mentioned in media reports as baseless.
- Multiple legal proceedings are ongoing against Ecstasy due to defaults.
- Edelweiss will pursue legal avenues to recover outstanding dues, viewing this as a tactic by defaulters to evade responsibilities.
- Edelweiss purchased 16 apartments from Ecstasy for approximately ₹127 crores and later sold them for approximately ₹134 crores in transparent transactions.
- Ecstasy failed to obtain the Occupation Certificate (OC) for Phase I of the Parthenon Project by May 18, leading to project delays and financial issues.