The public Housing Finance firm has initiated actions against two developers: Orbit Corporation based in Mumbai and Unitech from Delhi, due to their loan defaults.
The housing finance body has taken control of a property owned by Orbit Corporation in Mumbai for non-repayment and has also issued notices to Unitech for breaching its contractual obligations.
Orbit Corporation, headquartered in Mumbai, owes a substantial amount totaling Rs 96 crore, which incorporates interest, expenses, and additional charges. The public sector firm has seized control of its Residency Park project located in Andheri, with the exception of 155 apartments in the residential building.
In a bid to address the financial obligations, Orbit is currently in discussions aimed at negotiating repayment terms. They are diligently exploring all avenues to safeguard the company's interests amidst this challenging situation.
Earlier this year, Orbit failed to make payments on the interest and principal totaling Rs 96.50 crore, leading to the account being flagged as a non-performing asset.
On the other hand, Unitech secured a loan of Rs 300 crore back in 2007. According to reports, the firm has repaid Rs 100 crore of this amount up to now. Although there was a delay in this year’s payment, Unitech has reportedly reached an agreement with LIC regarding repayment terms.
It’s notable that Unitech received a payment default notice in November and is currently preparing to settle all its loans in this financial quarter. Furthermore, this year has seen various developers in Mumbai defaulting on loans, a trend influenced by plummeting sales in the sector.
Earlier in the year, rating agencies downgraded Mumbai-based Hubtown, which also faced difficulties in repaying interest and principal on Rs 100 crore of non-convertible debentures.