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Unitech shares tank 10 pct, LIC Housing Finance denies default notice

Dec 04 2013, 21:51 IST
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LIC Housing Finance also denied reports it had transferred the loan it had extended to Unitech to LIC. AP LIC Housing Finance also denied reports it had transferred the loan it had extended to Unitech to LIC. AP
SummaryShares of Unitech plunged amid reports it had received a notice from LIC Housing Finance.

LIC Housing Finance today said it has no exposure to Unitech Ltd, whose shares plunged around 10 per cent following reports the lender had sent a show-cause notice to the Delhi-based builder for defaulting on its loan payment.

"LIC Housing Finance Ltd does not have any exposure to Unitech; neither has it issued any default notice nor transferred any loan portfolio to LIC as being reported by a section in the media," the city-based housing finance company said in a late evening statement, denying reports earlier in the day which said the company had sent a notice to Unitech.

LIC Housing Finance also denied reports it had transferred the loan it had extended to Unitech to LIC.

Repeated attempts to elicit a comment from LIC Chairman S K Roy did not yield any result. He also did not reply to a text message.

"We would like to clearly state that the media reports regarding both (notice to Unitech and loan transfer to LIC) are wrong," the statement added.

Shares of Unitech today plunged nearly 10 per cent amid reports the realty major had received a default notice from LIC Housing Finance on a loan taken in 2007 for a luxury housing project in Noida near Delhi.

Unitech's scrip tanked 9.54 per cent to end at Rs 15.65 on BSE. Intra-day, the scrip lost 14.45 per cent to Rs 14.80. On NSE, the stock fell 8.99 per cent to Rs 15.70.

Unitech said in a statement that financial results for the current quarter would reflect "no pendency" with the said lender.

Although company did not share details, sources said Unitech had taken a loan of Rs 300 crore from LICHF in 2007, of which Rs 100 crore has already been paid.

About Rs 70-80 crore was overdue this year and both the parties recently agreed to settle the amount during the current month, they added.

Shares of LIC Housing Finance closed 2 per cent down at Rs 201.70 apiece on the BSE.

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