MUMBAI: Real estate investment company Unitech group secured a Rs 2,000-crore transfer of loans from two asset reconstruction companies to complete pending projects and is scouting for more investors for additional funding as the date set by the Supreme Court to deposit money nears in July, said two persons close to the development. The company is also pursuing state governments to secure another Rs 1,000 crore in pending claims.
Unitech got transfer of loans from Suraksha ARC and JM FinancialNSE -2.83 % to the tune of Rs 2,000 crore. Of these, around 16 projects are under JM Financial’s portfolio while seven projects are under Suraksha’s portfolio. The investments made by both the ARCs are towards working capital of the pending projects.
“There are around 52 pending projects but around two thirds of the units in these projects are completed,” said a person close to the development. “In some cases there are balance customer receivables on the units sold but that would happen in the coming months,” he said.
“We will not comment on any development on the issue as the matter is sub-judice,” a Unitech spokesperson said.
The company is also scouting for more investors and is already in talks with a couple of players for additional investments in some of their projects.
The company has been under pressure after the SC in May asked the government to explore an option to take over the group and complete the pending projects.
About 17,000 buyers have invested in Unitech’s projects stuck due to working capital issues. Sanjay Chandra, managing director of Unitech is in jail after being arrested by the economic offences wing of the Delhi police in August 2017.
Several homebuyers who had paid part of the money but not received the delivery of apartments dragged the company to court over the issue. The court has made depositing money a condition for Chandra’s release.
The company is required to pay Rs 750 crore in the court registry and only then would Chandra qualify for bail. His company has already paid close to Rs 500 crore, said one of the sources. Asked when the company will be able to deposit the entire amount, he added that it could happen within the next couple of months.
The SC is set to hear the case on July 5.
The company has also dragged some state governments to court over pending claims in some of the projects, the person quoted earlier, said.
Price of Unitech International ended at Rs 6.35, up 5.83% from its previous close on Monday. Unitech was trading at Rs 0.98 with no change in the stock price.