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Home >Companies >Unitech defaults on Rs38.52 crore payments to Central Bank of India

New Delhi: Realty firm Unitech Ltd has defaulted on payment of a loan instalment of 38.52 crore to the Central Bank of India, prompting the state-owned banker to issue public notice of default.

Unitech said that it has repaid 264 crore out of the 300 crore loan and the remaining would be paid shortly. In a public notice, the bank on Thursday said: “...Unitech Ltd through its directors has availed credit facilities to the tune of 300 crore from Central Bank of India. The account was declared NPA (non-performing asset) on October 30, 2015".

“As on November 18, 2015, the borrower is liable to pay a sum of 38,52,73,391 with further interest with effect from November 19, 2015 and other expenses/costs to the bank," the notice said. “Despite repeated demands the borrower has failed to make any payment after October 1, 2015," it said and cautioned the people while dealing with the company and its directors.

When contacted, Unitech spokesperson said: “Unitech has already repaid 264 crore out of the 300 crore taken as loan. The company expects to repay the outstanding amount within a short span of time". Stating that the Unitech’s debt position remains comfortable, the spokesperson said the company is committed towards meeting its obligations towards its lenders.

Unitech is facing a liquidity crunch due to slowdown in the real estate market, particularly housing segment. The company has been facing consumer complaints and protest due to delay in completion of some of its projects. Earlier this month, Unitech reported a consolidated net loss of 16.10 crore for the quarter ended 31 December 2015, on sharp rise in finance cost.

Its income from operations also fell by 42% to 408.74 crore in the third quarter of this fiscal. Finance cost increased to 84.56 crore in the October-December quarter of this fiscal from 7.33 crore in the year-ago period. Unitech’s consolidated net debt as of 31 December 2015 stood at 6,802.05 crore. Net debt to equity ratio was 0.64. However, Unitech’s sales bookings increased by 25% to 832 crore during the April-December period of the current fiscal, driven by higher sales realisation.

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