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In a recent legal development that has raised eyebrows in the real estate circles of Mumbai, a court-appointed commissioner has taken symbolic control of properties owned by developer Jayesh Tanna. These properties are located in various prominent Mumbai neighbourhoods, including Borivli, Andheri, Goregaon, South Mumbai, and Kandivli. The legal action was initiated under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, due to a substantial loan default by Tanna amounting to over Rs 200 crore.
Symbolic possession, an intriguing legal manoeuvre, is employed to exert psychological pressure on the debtor with the aim of motivating them to clear their outstanding dues. Interestingly, this is achieved without the bank physically occupying the properties in question, making it a unique and effective tactic in financial dispute resolution. The 3rd Additional Chief Metropolitan Magistrate, MRA Shaikh, appointed a team of nine lawyers to oversee the legal proceedings for the symbolic possession. Their primary task was to take possession of the properties linked to Tanna, who is associated with SSSC Escatics Private Limited, formerly known as Sai Siddhi Developers.
Notably, the ownership of these properties extended to other family members, including his wife Heena Tanna, son Vivek Tanna, and relative Deep Tanna. Jayesh Tanna himself is currently incarcerated in Arthur Road jail and is facing a litany of approximately nine offences that have been registered across Mumbai. Many of these cases involve the alleged sale of flats to third parties. Assets Care and Reconstruction Enterprises (ACRE), a financial entity established under the Act, played a pivotal role in instigating these legal actions. ACRE filed an application before the court, citing Tanna's substantial default on a loan amounting to a staggering Rs 200 crore.
Advocate Sunil Pandey, one of the court-appointed commissioners, recounted the challenges they encountered during the symbolic possession process. Tanna's associates made efforts to obstruct their work by locking elevators, disconnecting electricity, and even denying entry. Despite these hurdles, the determined legal team managed to successfully complete the process of symbolic possession.
This recent development serves as a stark reminder of the complexities and intricacies involved in property-related legal matters, particularly in the dynamic and ever-evolving real estate landscape of Mumbai. It also underscores the innovative strategies and legal tactics employed to address loan defaults and financial disputes in Mumbai's real estate market, where high stakes and substantial investments are the norm.
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