Get this: LIC is likely to declare realty major Unitech as a defaulter

Life Insurance Corporation is likely to declare debt-ridden real estate company Unitech as a defaulter after two previous rounds of restructuring.

Unitech had taken a loan of Rs 200 crore from LIC Housing Finance in 2007 but the latter shifted the portfolio to LIC. However, the realty major has not been able to repay the loan even after two recasts. LIC has already filed two cases against Unitech with respect to bouncing of post-dated cheques.

[caption id=“attachment_1119153” align=“alignleft” width=“380”]  Reuters[/caption]

Unitech has agreed to repay Rs 78 crore by 28 December but LIC issued a notice to the company on 27 November despite the assurance from the company, _CNBCAwaaz_reported.

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The notice, which has been issuedunderSection 13 (2) Of SARFAESI Act , bars the builder from selling its Noida Sector 96 land.

Unitech is yet to respond to queries.

High interest rates and stringent lending standards have hurt demand for new apartments and commercial property in India. Also, a slowing economy and the global credit crunch have reduced liquidity for the real-estate sector.

This has forced several other developers to negotiate with financial institutions over replacing existing loans with cheaper debt.