Yes Bank likely to take over Ritz Carlton for non-payment of Rs 300 crore loan

Mumbai-headquartered Yes Bank is mulling taking over the ownership of Ritz Carlton, the luxury five-star hotel located in Bengaluru, citing non-payment of loans worth Rs 300 crores. The hotel was developed under the banner of NEL Holdings South Ltd. If Yes bank were to acquire the property, it may sell it to a new buyer after it files a petition before the National Company Law Tribunal (NCLT), reports Mint. NEL Holdings South Ltd, formerly known as Nitesh Estates, is a venture founded by Nitesh Shetty, who was once considered to be a real estate mogul. Over time, and a few bad investments later, the fortune built by Shetty seems to be standing on feeble grounds. The realtor group is not only grappling with banks and creditors due to non-payment of loans, but also entangled in several litigations. Yes Bank, in 2020, declared the loans payable to NEL Holdings as non-performing. Late last year, the bank sent a notice to the realtor group under the Securitisation and Reconstruction of Financial Assets and Securities Interest (SARFAESI) Act of 2022. In the notice sent to NEL Holdings, Yes Bank, citing section 13 (2) of the Act, said that it would take over the hotel for non-payment of dues if the borrower is not able to pay the amount due within two months of the date of issuance of the notice. The property under discussion was the first hotel in the country to be launched by Marriott International under its Ritz Carlton brand. The hotel was inaugurated in 2013. Nitesh Residency Hotel signed a 40-year lease for the 2.7-acre land owned by the Archdiocese of Bangalore. In 2010, NEL Holdings went public, following which it applied for a loan of Rs 300 crore at Yes Bank. Now, the bank is planning to take over the 281-room hotel. However, finding a potential buyer for a hotel that charges Rs 21,000 per night for its cheapest room, will not be easy. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.