MUMBAI: The Economic Offences Wing‘ probe against Edelweiss Group on a complaint by Ecstasy Realty Pvt Ltd (ERPL) is for alleged misappropriation of loan disbursement and not a case of fraud, the company said.
Edelweissin a statement said that ERPL had previously filed a commercial civil suit on the same matter, where the court denied any interim relief. Edelweiss said that its dispute with Ecstasy is a civil financial dispute, not a criminal offence.
The company said that FIR is a retaliatory action after ERPL’s failure to obtain court relief. As of December 31, 2024, ERPL owes Rs 1683 crore, including Rs 480 crore in unpaid principal from April 2022 onward, the company said.
The EOW FIR claims that Edelweiss Group, along with other parties, entered into an agreement with Ecstasy Realty Pvt. Ltd. (ERPL) for a Rs 1350 crore loan under a Debenture Trust Agreement for the ‘Raisakaran’ project in Andheri West, Mumbai. It states that only Rs 600 crore was disbursed.
The FIR also mentions mortgaged flats being sold below market rates and interest rates increased from 15% to 16.25% during the 18-month moratorium period, resulting in an alleged Rs 61.68 crore routed through associated companies. Edelweiss said they are examining legal provisions to challenge the FIR.
