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.