Indiabulls Housing finance has approached the NCLT Mumbai on 13/05/2022 a plea to admit Mumbai-based realty development firm Radius Estate Projects under Corporate Insolvency Resolution Process (CIRP). The realty firm owes over Rs 798 crore to Indiabulls Housing Finance.
Indiabulls Housing Finance had extended loans to a few subsidiaries of Radius Developers and managed to recover most of it through the sale of the latter’s 7-lakh-sq-ft marquee office property ONE BKC in Mumbai’s business district to Blackstone Group.
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The US-based private equity major had acquired the property for Rs 2,500 crore and Indiabulls Housing Finance, one of the key lenders to the developer then, was repaid Rs 1,650 crore through this transaction.
The NBFC is now looking to recover the residual dues in the form of loans and interest thereon from the developer by moving NCLT against some of these subsidiaries invoking personal guarantees provided by its promoters.
On March 28, in a plea filed by the SBICAP Trustee Company, the tribunal allowed an application by Piramal Capital & Housing Finance Ltd (PCHFL) that opposed the withdrawal of insolvency resolution against Radius Estate Projects.
In that case, Radius Estate Projects was admitted under the insolvency resolution laws in a petition filed by SBICAP Trustee Company, on behalf of its debenture holders, for a default of more than Rs 23 crore.
