Mumbai's Iconic Rhythm House Located At Kala Ghoda Gets New Owner Under Insolvency Auction

Mumbai: The iconic landmark Rhythm House has gone down the hammer under the insolvency auction with the new owner acquiring the SoBo haunt in the cultural and heritage precinct of Kala Ghoda.

The National Company Law Tribunal (NCLT) had in February 2020 ordered the liquidation of Rhythm House, which had been seized by the Enforcement Directorate (ED) investigating Punjan National Bank scam of Nirav Modi.

ED had seized several assets of the fugitive diamond trader Nirav Modi in the Rs 6,500 crore PNB loan scam available using fraudulent letters of undertaking (LoU) which were auctioned by NCLT pay off the debtors.

The cultural landmark owned by fugitive diamantaire Nirav Modi was popular with music lovers had closed shutters in 2016 after 70 years.

“Rhythm House was part of our growing up in Bombay for over 50 years to get all kind of music from ghazals to jazz under in one roof. We collected vinyls during our college days and then got tapes and later CDs as we got older and technology evolved but memories are still the same,” said Mazgaon resident and late Union Minister and LJP leader Ramvilas Paswan close confindate businessman Shamim Hava.

The new owner, Bhaane Retail, a subsidiary of Shahi Exports, India's largest apparel manufacturer has emerged as the highest bidder for the property in an insolvency auction with a Rs 30-crore offer.

Rhythm House is amongst the several properties valued at Rs 1000 crore owned by Nirav Modi attached by ED being auctioned to recover the Punjab National Bank dues.

The popular music store Rhythm House closed down shutters in 2016 and sold by the owners Mehmood Mahomedhussein Curmally in 2017 to Nirav Modi promoted Firestar Diamond International Pvt Ltd.

The confiscated assets worth Rs 2,600 crore in a money laundering case include Rhythm House, a posh flat at Napean Sea Road, office building in Kurla, a solar power plant in Ahmednagar, paintings and luxury cars for liquidation. The other properties attached including four lavish flats at Samudra Mahal building in Worli, Alibaug bungalow and windmills in Jaisalmer are in ED possession.