Shivaji Park Police Book Xrbia Group Promoters Over ₹1,558 Crore Loan Fraud
The Shivaji Park police in Mumbai have registered a First Information Report against the promoters and directors of the Xrbia Group and associated companies over an alleged financial fraud amounting to ₹1,558.30 crore involving loans diverted to real estate projects and working capital.
The case, registered following a court order, names promoters Rahul Nahar and Vishal Nahar, along with Xrbia Developers and several group entities. The Economic Offences Wing of the Mumbai Police has taken over the investigation.
According to the FIR, financial facilities were extended to Xrbia Developers and its group companies between 2016 and 2022 by L&T Finance Ltd, L&T Housing Finance Ltd, and L&T Infrastructure Finance Company Ltd. The credit facilities were sanctioned for residential and commercial real estate ventures, plotting developments, and general working capital requirements.
The loans were secured against movable assets, immovable properties, shares, and corporate guarantees provided by the group companies and other guarantors. On March 29, 2023, L&T Finance assigned its rights in the loans and underlying securities to Asset Reconstruction Company (India) Ltd, also known as ARCIL, which assumed the mandate to recover the outstanding dues.
ARCIL stated that the group's total outstanding dues reached approximately ₹1,279.92 crore as of January 2, 2025, comprising the principal amount, interest, and penal charges. ARCIL alleged that despite repeated demands, the borrowers failed to clear the dues or maintain the stipulated security cover.
The complaint further alleged that mortgaged assets were transferred without the lender's consent, including portions of a secured property located at Balewadi in Pune. In addition, ARCIL alleged that units across multiple Xrbia projects were sold without the required No Objection Certificates, with some units sold below the agreed minimum sale price.
Furthermore, the complaint alleged that the sale proceeds from these property transactions were not deposited into the designated escrow accounts as mandated by the loan agreements. The Economic Offences Wing is continuing its investigation into the matter.
