R.K. Fashion Accessories Has No Lease Agreements for Key Premises

R.K. Fashion Accessories has no available rent agreements or rent receipts for its registered office, Room A-201, and business premises, Room A-107, at Bagree Market in Kolkata. The company says the 17 September 2018 fire destroyed the original tenancy records for both shops, while the original owner subsequently became untraceable and stopped communicating.

Why does R.K. Fashion Accessories lack lease agreements for key premises?

R.K. Fashion Accessories says a massive fire engulfed Bagree Market in central Kolkata on 17 September 2018 and completely destroyed A Block, including Shops A-201 and A-107. The company states that all original documents for the premises, including rent agreements, rent receipts and other tenancy records, were burnt and destroyed in the fire.

R.K. Fashion Accessories says the original owner became untraceable after the fire and ceased all communication. As a result, no rent agreement or rent receipt is presently available for either A-201 or A-107. The company says the missing documents resulted from circumstances beyond the control of the occupants.

The record gap differs from the documentation shown for three other leased premises at Bagree Market. R.K. Fashion Accessories lists 99-year tenures starting on 18 September 2002 for two fifth-floor shop groups covering 803 square feet and 235 square feet, respectively. It also lists a 324-square-foot second-floor business premises, A-206, with a stated period from 2 March 2026 to 31 January 2027.

Which R.K. Fashion Accessories locations are affected?

R.K. Fashion Accessories identifies Room A-201, second floor, Bagree Market 71, B. R. B. Basu Road, Kolkata 700001, as its registered office. The company moved its registered office to A-201 on 1 August 2013 from Room A-213 in the same market, citing administrative and operational efficiency and better infrastructure.

R.K. Fashion Accessories identifies Room A-107, first floor, 71 Biplabi Rash Behari Basu Road, Bagree Market, Kolkata 700001, as a business place. The leased-properties table marks both A-201 and A-107 with the note explaining that the 17 September 2018 fire destroyed their original tenancy documents.

The supplied disclosure does not state the area, rent, premium, tenure or expiry date for A-201 or A-107. In comparison, R.K. Fashion Accessories reports consideration of Rs 86 lakh and Rs 26 lakh for the two fifth-floor lease groups, and Rs 0.50 lakh for A-206. The absence of commercial terms in the A-201 and A-107 rows is consistent with the stated lack of underlying rent records.

R.K. Fashion Accessories separately lists five owned properties, including a 900-square-foot warehouse at 15A Tarak Dutta Road in Kolkata and a 6,520-square-foot four-storey building at 161/6 Rash Behari Avenue used for business purposes. Those properties are distinct from A-201, which remains the registered office stated in the company’s filing.

What does the Bagree Market fire history show?

R.K. Fashion Accessories reports a fire breakout at its Bagree Market workplace in 2017, for which it received an insurance settlement of approximately Rs 1.87 crore. The company says certain portions of stock were not covered under that claim, meaning the disclosed settlement did not cover all stock affected in that reported incident.

The immovable-properties disclosure separately dates the fire that destroyed A Block and the tenancy documents for A-201 and A-107 to 17 September 2018. The supplied pages do not state that the 2017 workplace fire and the 2018 A Block fire were the same event, so they are separate disclosures on the available record.

As of the Draft Red Herring Prospectus filing date, R.K. Fashion Accessories lists a Zurich General Insurance policy covering finished stock for Rs 2 crore from 18 March 2026 to 17 March 2027. The premium is Rs 0.28 lakh. This policy covers finished stock, whereas the missing material for A-201 and A-107 consists of tenancy documents.

Following reconstruction, the Bagree Market Central Kolkata Traders Welfare Association took responsibility for market maintenance and electrical distribution, according to R.K. Fashion Accessories. The association collects applicable charges from shops through reimbursement receipts. The company distinguishes those post-reconstruction reimbursement receipts from the unavailable rent agreements and rent receipts for the two affected rooms.

What would need to change to restore the records?

R.K. Fashion Accessories has not disclosed a plan, timetable or agreement to replace the unavailable rent agreements and receipts for A-201 and A-107. The company identifies two continuing constraints: the original documents were destroyed on 17 September 2018, and the original owner became untraceable and stopped communicating.

R.K. Fashion Accessories says shopkeepers collectively reconstructed the affected A Block at their own expense after the 2018 fire. The company does not disclose the total reconstruction cost, its own contribution, a replacement lease, or any tenancy record created after reconstruction. A documented replacement arrangement is therefore not described in the supplied pages.

The existing property table shows that R.K. Fashion Accessories can report defined lease terms where records are available. The fifth-floor premises have 99-year tenures beginning 18 September 2002, while A-206 has a stated end date of 31 January 2027. No comparable term is disclosed for A-201 or A-107 because no rent agreement or receipt is presently available.

R.K. Fashion Accessories also states that there is no conflict of interest between the master of immovable properties crucial for operations and the company, its promoters, promoter group, key managerial personnel, directors, subsidiaries, group company and their directors. That statement does not provide tenancy documentation for A-201 or A-107, but it is the company’s disclosed position on property-related conflicts as of the filing date.

Conclusion

R.K. Fashion Accessories’ disclosed lease-record gap concerns two Bagree Market locations: A-201, its registered office since 1 August 2013, and A-107, a business place. The company attributes the gap to the destruction of original records in the 17 September 2018 fire and the subsequent loss of communication with the original owner, while other listed leased premises have stated periods and consideration.

What to watch next is any disclosed agreement, ownership communication or post-reconstruction arrangement for A-201 and A-107. R.K. Fashion Accessories has disclosed maintenance and electricity reimbursement receipts collected through the Bagree Market Central Kolkata Traders Welfare Association, but it has not disclosed a plan to recreate the missing tenancy records.