Mumbai has taken a decisive legal step in a high-value loan default case, with the Esplanade Metropolitan Magistrate Court ordering the takeover of prime Nahur land owned by Nirmal Lifestyle Developers and Nirmal Lifestyle Malls to recover ₹1,179.41 crore. The court has appointed a commissioner to take physical possession of the properties, marking a significant move in the recovery process.
As per a Hindustan Times report, the court has appointed advocate Pratik Surti, nominated by Chief Judicial Magistrate Archana K Mandavgade, to take control of the properties. The land spans about 193,000 square metres and will be handed over to Phoenix ARC, an asset reconstruction company that specialises in recovering bad loans.
This step was taken after multiple failed recovery attempts. It happened because borrowers did not repay the loan even after notices, so the court stepped in to enforce recovery.
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According to the report, the court told the commissioner to give a 15-day advance notice to all concerned parties before taking possession of the land. If needed, he can use reasonable force, including breaking open locks, and seek police assistance. Any items or documents found must be kept safe and handed over to Phoenix ARC’s authorised officer.
Details of the land parcels
The land has different parts with different uses. About 92,672 sq m is earmarked for development by Elevated Avenue Realty LLP. Another 36,911 sq.m has already been handed over to the Brihanmumbai Municipal Corporation. A housing project, Rejuve 360, is being built on 26,667 sq.m. Around 27,281 sq m has a partly built mall, and 9,469 sq m is in Sector II.
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Loan history and legal action
According to the plea, the loans were first given by L&T Finance between July 2017 and February 2022, totalling ₹894.30 crore. The loan account was later classified as a non-performing asset in December 2022, after being assigned to Phoenix ARC.
In February 2025, Phoenix ARC issued a formal demand notice under the SARFAESI Act, asking borrowers to repay ₹1,179.41 crore within 60 days. Even after taking symbolic possession on April 25, 2025, the money was not repaid, which led the ARC to approach the court seeking physical possession.
Allowing the plea, the court directed the commissioner to complete the takeover quickly and submit a report within 90 days. This is an important step to recover the money and proceed with enforcement.
