Unitech’s Noida land may be seized by LIC
“Notional possession” of a part of real estate major Unitech’s 350-acre land parcel in Noida has been taken by Life Insurance Corporation of India (LIC). This is due to the failure to repay a part of its nearly Rs 150-crore loan from LIC. The ‘Notional Possession Notice’ issued by the country’s largest insurer warned the public against dealing with the land parcels in sectors 96, 97 and 98 in Noida. The lands are prime properties along the expressway that connects the Delhi suburb with Greater Noida. Such a notice, bankers point out, is just one step away from taking physical control of an asset, although the property remains under the company’s charge. Once the accounts are settled, the property is handed back to the company.
LIC issued a demand notice on November 26, 2013 after the company failed to clear a part of the dues. The demand notice required the company to pay its dues within 60 days. When the company failed to do that, LIC took “notional possession” of a part of the land which had been offered as collateral. A Unitech spokesperson clarified that the company is in the process of clearing its dues to LIC.
Real estate companies have been hit hard by the slowdown in the market but in case of Unitech, its foray into telecom has been partly responsible for its financial troubles. The company has sold several assets, including hotels and special economic zones, over the past few months, to lighten its debt burden.
Source: The Times of India
Debt Burden, demand notice, Land parcel in Noida, LIC, Noida, Noida land, Notices, notional possession, sale of assets, Slowdown, Unitech, Unitech Noida
