LIC Housing Fin Puts Orbit's Andheri Project on the Block : The Economic Times

Mumbai:



LIC Housing Finance has put real estate developer Orbit Corporation's residential project in Mumbai's Andheri suburb on the block, following a default in loan repayment, to recover its dues.

The lender had taken possession of the property in December 2013 after the developer defaulted on loans of 96 crore, out of total dues of `. 250 crore.

LIC Housing Finance has now invited bids for nearly one lakh sq ft in this project through a public notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFESI) Act, with a reserve price 125 crore for the project.of ` The lender had marked nearly 26,000 sq ft at Orbit Corporation's Lower Parel project Orbit Grand, 1.70 lakh sq ft at project Orbit Residency Park in Andheri and 45,600 sq ft space at Orbit Midtown at Lower Parel for its dues.

The developer had secured loans from LIC Housing Finance through personal guarantees executed by its directors Ravikiran Aggarwal and Pujit Aggarwal.

Email queries to both Orbit Corporation and LIC Housing Finance remained unanswered till late Tuesday evening.

In August 2013, the Mumbai based real estate developer had defaulted on liabilities including repayment of loan availed from LIC Housing Finance and the interest on the amount, joining the list of troubled players in the industry grappling with a severe liquidity crunch.

The housing finance company had then classified the account as a non-performing asset and served a recovery notice to the developer known for its premium south and central Mumbai developments.

The lender had also restrained the developer from creating any third-party rights on over 2.40 lakh sq ft across three of its projects that were mortgaged for securing the loan along with hypothecated receivables from seven of its luxury projects.

Orbit Corporation took ` . 250 crore loan from LIC Housing Finance in 2008 and repaid ` . 154 crore until the end of 2010. The final payment of the entire loan amount was due in January 2013, said a source. The projects for which the loan was secured, Orbit Grand at Lower Parel and Orbit Residency Park at Andheri, were stuck in regulatory deadlock since 2011.

The regulatory deadlock had stalled construction as well as sales and cash flow, a senior company official had said in 2013.