Hui Ka Yan was taken away by police earlier this month and is being monitored at a designated location, the report says.

The world's most indebted property developer gave creditors a basket of options to swap their debt into new bonds and equity-linked instruments backed by the group and its two Hong Kong-listed companies.

The bank appointed receivers to take over the 5,000 sq ft mansion on Nov 1, according to a filing.

With more than US$300 billion in liabilities, Evergrande, once China's top-selling developer has been at the centre of the crisis and its debt restructuring plan is seen as a possible template for others.

The real estate giant is drowning in US$300 billion of liabilities, and has struggled to repay bondholders and investors after a clampdown by Beijing suddenly turned off the liquidity taps.

Trust companies, which pool money from wealthy investors, are an important source of funding for Evergrande and other property developers in China.

Fitch also declared Kaisa, a smaller property company but one of China's most indebted, had defaulted on US$400 million of bonds.

The Chinese government, which sparked the crisis when it launched a drive last year to curb excessive debt among Evergrande and other real estate firms, is poised to take a leading role in the restructure, analysts say.

Hong Kong-listed Sunshine 100 China Holdings has repeatedly struggled to meet its debt obligations this year and also defaulted on a bond repayment in August.

The group had said it might not have sufficient funds to continue meeting its financial obligations.

However, it is unlikely that Xu Jiayin's personal sacrifice would make much of an impact on Evergrande's liabilities of more than US$300 billion, with Bloomberg reporting his fortune at less than US$8 billion.

Evergrande, which has more than US$300 billion in liabilities and 1,300 real estate projects in over 280 cities, missed a third round of interest payments on its international bonds this week.