Company linked to MP Rajeev Chandrasekhar, Mantri mortgage KMF land; raise huge loan

Two big real-estate players have mortgaged prime land belonging to the Karnataka Co-operative Milk Federation and raised loans to the tune of Rs 165 crore.

In 1998, the government had allotted the land to KMF in Survey numbers 5 and 5/1 of Koramangala, next to the passport office, to build an office complex. The area is now a posh shopping destination.

KMF built nothing there. It leased out the land for 30 years to PVK Koramangala Development Pvt Ltd, a subsidiary of Jupiter Capital, in which Rajya Sabha MP Rajeev Chandrasekhar is the key managerial person.

Strangely, KMF did not receive any money when it executed the lease deed in 2008. It agreed to a quarterly rent of Rs 35 lakh once a commercial complex was built there.

Enter Mantri Habitats

PVK Koramangala didn't build anything either. It entered into a joint development agreement (JDA) with Mantri Habitats in 2011, and received Rs 9 crore as a deposit. Strangely, KMF was not even a party to the agreement.

According to the agreement, PVK got full ownership of 44% of the super built-up area. Mantri got the remaining 56%.

The agreement says the two parties enjoy absolute ownership, which means they can "hold, gift, sell, mortgage, lease or otherwise dispose of their respective shares or any part thereof in any manner they may deem fit".

Loans from PNB, LVB

In 2014, the Mantri group raised a loan of Rs 50 crore from Punjab National Bank (PNB) by mortgaging the very land property in Survey 5 and 5/1 of Koramangala.

On January 4 this year, Mantri closed the loan account by paying off Rs 66 crore, and obtained a no-objection certificate.

The same day, it got a loan of Rs 140 crore from Lakshmi Vilas Bank, against the 56% share it enjoys, for the 'Jupiter KMF Commercial Project'.

Three months later, on March 17, PVK Koramangala mortgaged the full two acres and 16.74 guntas of KMF land to Lakshmi Vilas Bank, and raised a loan of Rs 25 crore.

What documents say

The Memorandum of Deposit of Title Deeds handed over to Lakshmi Vilas Bank by Mantri and PVK Koramangala states that PVK holds the khata of the land belonging to KMF.

Mantri Habitats was never a party to any of the agreements drawn up by KMF. However, in the loan agreement, Mantri Habitats claims ownership of the property.

"The borrower (Mantri) hereby declares that the premises at Jupiter KMF Commercial Project at Koramangala Bangalore belongs to him as owner/lessee," the loan agreement with Lakshmi Vilas Bank says.

In its loan agreement with the Lakshmi Vilas Bank, PVK claimed the loan was "for the purpose of part repayment of unsecured loans raised and for other business requirements".

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Go ask Mantri, says Rajeev's firm

When DH contacted Rajeev Chandrashekar's office, M S Ram, director of PVK Koramangala, claimed Jupiter Capital had no investment in PVK.

"PVK Koramangala has a lease agreement with KMF and a joint development agreement with Mantri. The financing of the project is done by Mantri. We are not aware of the specifics. All such questions should be addressed to them (Mantri). However, to the best of our knowledge, the land is not pledged for financing of this project," he said.

An analysis of the documents reveals otherwise. In fact, a circuitous route links PVK Koramangala to Chandrashekar's Jupiter Capital.

PVK Kormangala is a direct subsidiary of PVK Shelters Pvt Ltd, which in turn is a subsidiary of Hindustan Infrastructure and Engineering Pvt Ltd.

The holding company of Hindustan Infrastructure and Engineering is Jupiter Capital.

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Complaint with BBMP

Amid these developments, Mantri Habitats has filed an application for a modified plan. A citizen has filed a complaint with the BBMP, urging it to cancel the plan sanctioned to Mantri Habitats.

Ravi Kumar R N, the complainant, says PVK and Mantri Habitats entered into a joint development agreement, keeping the real land owner KMF out of it, and hence the primary plan sanction must be cancelled.

The file notings made on Mantri's request for a modified plan refers to a story that appeared in DH on May 24. A BBMP official said it would seek KMF's response.