Bombay HC finds Hirco arm prima facie loan debtor

The Bombay High Court has directed a division of the real estate company Hirco Plc to reveal all of its assets. This interim order arose because, at first glance, Hiranandani Palace Gardens apparently sidestepped loan repayments to Tata Capital Financial Services.

Tata Capital initiated a petition against Hiranandani Palace Gardens, which possesses township projects located in Chennai and Panvel, near Mumbai. The financial institution asserted that Hirco Plc defaulted on a loan amounting to Rs 76 crore. The lender has also requested that they dissolve the company.

The state's highest court has issued an order mandating that the loan be repaid to the lender.

Hiranandani Palace Gardens has committed to submitting an undertaking to the High Court, ensuring that the builder will not establish any third-party rights concerning mortgaged assets. Moreover, the builder is prohibited from further burdening other properties without obtaining the court's consent. The matter is scheduled for a hearing following the Diwali holidays.

The builder has been in default of its loan obligations since December 2012 and now owes Rs 82.6 crore, encompassing an annual interest rate of 18.5 percent.

In their petition, Tata Capital contended that Hiranandani Palace Gardens faces financial difficulties and cannot fulfill its obligations to creditors. They further alleged that the company misrepresented information while securing the term loan.