LIC Housing Finance takes over Orbit Corp’s Mumbai property


orbitThe public Housing Finance firm has taken action against two developers one from Mumbai known as Orbit Corporation and the other one is Unitech a Delhi-based developer for defaulting on loans.

The public sector firm has taken control of a Mumbai property of Orbit Corporation for not repaying and issued notices to Unitech for breaking its deed.

The Mumbai-based developer has an outstanding of Rs 96 cr including interest, expenses and other charges. The public firm has taken possession of its Residency Park project in Andheri, excluding the 155 apartments in the residential complex.

Orbit is trying to negotiating and understandings to repay the loans. They are taking all the measures to safeguard the interest of the company.

Earlier this year, Orbit had defaulted on interest and principal dues of Rs 96.50crore to it and declared the account as non-performing assets.

The Unitech has taken a loan of Rs 300 cr in 2007. The realty firm has repaid Rs 100 cr so far. The payment for this year was delayed but the firm has reached a deed with the LIC for repayment, accodig to sources.

Unitech had received a notice for default in payment in November. The firm is gearing to repay all its loans in the current quarter. This year, a number of Mumbai developers defaulted on loans as they struggled to repay loans in the backdrop of falling sales.

Early this year, rating agencies demoted Mumbai-based Hubtown for defaulting on repayment of interest and principal on Rs 100 crore of non-convertible debentures.

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