LIC Housing moves NCLT to recover Rs 31 crore loan from DB Realty

LIC Housing Finance has filed an application before the National Company Law Tribunal to start insolvency process against DB Realty for recovery of Rs 30.63 crore outstanding loan.

Published: 13th October 2017 01:57 PM  |   Last Updated: 13th October 2017 02:35 PM   |  A+A-

By PTI

NEW DELHI: LIC Housing Finance has filed an application before the National Company Law Tribunal (NCLT) to start insolvency process against DB Realty for recovery of Rs 30.63 crore outstanding loan, the Mumbai-based developer said.

DB Realty said both the parties are in talks to settle this outstanding loan.

In a filing to the BSE, DB Realty informed that the company had availed of Rs 200 crore loan from LIC Housing Finance Ltd in January 2010 and out of that, Rs 188 crore were disbursed to it.

The developer repaid Rs 157.37 crore to LIC Housing Finance within 18 months from the disbursement and the balance loan outstanding is Rs 30.63 crore.

"LIC Housing Finance has filed an application by financial creditor to initiate corporate insolvency resolution process under the code at the NCLT Mumbai against DB Realty for recovery of this outstanding money," the filing said, adding that the matter is pending admission before the NCLT.

DB Realty said that "settlement talks" are in progress between the two companies.

"The matter is posted under the caption 'For Settlement' in the NCLT on October 16 and the company is hopeful of a positive outcome in view of settlement talks, which are in progress," DB Realty said.

In the Delhi-NCR property market, insolvency proceedings have started in Jaypee Infratech and Amrapali group company.

The real estate sector is facing a multi-year demand slowdown, resulting in huge delays in delivery of flats, forcing buyers to go on protest at sites and file legal cases in courts.

Many developers have defaulted in repayment of their bank loans.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

Asian Games 2018