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Case filed against builder over delayed possession
A group of buyers has filed a complaint with Kashimira police in Mira Road against D B Realty, under the Maharashtra Ownership Flat Act (MOFA), accusing the builder of delaying the project and misleading them about the possession date. The builder denied the allegation.
Police registered the case under sections 3 and 13 of MOFA against Vinod Goyanka, Shahid Balwa and five others.
Superintendent of police (Thane rural) Mahesh Patil said, “We registered the case against them and during the probe, if needed, we will add other sections.“ The complainant, Abhijit Dhiwar, said he had booked a flat in the D B Ozone project near Dahisar toll naka in 2010. He had registered the flat after two years and was promised possession in December 2014, his complaint stated. There was a grace year to complete work but the builder failed to meet the deadline, he said. Dhiwar, along with others, tried to find an amicable solution and demanded compensation for the delay . Dhiwar said, “There was no proper reply from the builder, after which we started approaching various authorities. We have filed the case and requested police to add the cheating section but they refused. He is misleading us about the possession date. He has given us a new possession date of November 2017 but he mentioned the date as December 2019 on the Real Estate Regulatory Authority (RERA) website.“
The 27 other flat-buyers who recorded their statements against the builder alleged that he was charging Rs1,000 per sq ft extra, which was not mentioned in the offer letter.
D B Realty legal representative Shailendra Mishra stated that police cannot register and investigate the case under MOFA. He said, “There is a competent authority to deal MOFA cases, who decides if there is any violation. One should first approach the competent authority for any dispute.“
He stated that there was no delay in completion of the project from the builder's side. He said, “It was because of certain circumstances which were beyond our control. We submitted our reply to the legal authorities and the matter is sub judice.We will expedite work and are committed to complete it on time. There is nothing wrong in charging Rs1,000 per sq ft from buyers, as it was clearly mentioned in the agreement.“
- False committments by DB Realty - The Property News
Operation Grahpravesh: Tareekh Pe Tareekh For DB Realty's Home Buyers In Mumbai sLGg0Bit9zs
- DB Realty defaults on debt repayment and taxes
DB Realty, the group allegedly linked with 2G spectrum scam, has defaulted on repayment of debt and deposits of provident fund, employees' state insurance and various taxes.
While the default in the payment of taxes has been happening since April 2010, the Shahid Balwa-led firm has defaulted on debt repayment in the last fiscal.
The company defaulted on loan repayment to LIC Housing Finance since January last year. During this calendar year till March, it has not paid its dues to Reliance Capital, ICICI Bank and Indiabulls Housing Finance, according to the annual report of the company for fiscal 2017.
Between January 2016 and March 2017, the company has defaulted on loan payments to the tune of Rs 53.85 crore. An amount of Rs 5.89 crore is to be paid to the authorities as service tax, wealth tax, property tax and value-added tax, due between April 2010 and September 2016.
Also, income tax payment of Rs 6.63 crore is pending for the assessment years 2012-13, 2013-14 and 2014-15, but it is under dispute.
"The company is not regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees' state insurance, income tax, value-added tax, cess and other material statutory dues applicable to it, and there have been serious delays in a few cases. As explained to us, the provisions regarding sales tax, customs duty and excise duty are presently not applicable to the company," reads a note by independent auditors in DB Realty's annual report for the last financial year.
According to the report, the real estate developer has defaulted on interest payment of Rs 3,228,012 to Indiabulls Housing Finance in March.
Similarly, between January and March this year, the company did not pay the principal amount of Rs 22,327,330 and interest of Rs 26,33,975 to ICICI Bank. Additionally, in February and March, it defaulted on interest payment of Rs 24,11,176 and Rs 27,01,770, respectively, to the bank.
From January this year, the developer has also defaulted in paying interest of Rs 134,745,484 to Reliance Capital.
Likewise, since January 2016, it has not paid LIC Housing Finance principal and interest to the tune of Rs 370,481,067.
As of fiscal 2017-end, DB Realty's total current liabilities, or amounts due to be paid to creditors within twelve months, increased 39% year on year to Rs 2,523.9 crore, as against Rs 1,818.7 crore a year ago.
Of the total Rs 2,523.9 crore, the company managed to bring down short-term borrowings from Rs 347.7 crore to Rs 262.2 crore during the year. However, other current liabilities shot up Rs 781 crore to Rs 2,068 crore by 2016-17-end.
In 2008, DB Realty's Swan Telecom was allotted 2G spectrum licences for 15 circles and later partnered with Etisalat. MONEY TROUBLE
Between January 2016 and March 2017, the company has defaulted on loan payments to the tune of Rs 53.85 crore
An amount of Rs 5.89 crore is to be paid to the authorities towards between April 2010 and September 2016
- Hi I have bought one in building no9 buildings 1-4 have been given posession.they have giving contracts to finish of the work. The project is registered under rera so they are bound to finish by Dec 2019. Mall the documents uploaded are clear.CommentQuote0Flag
- LIC Housing moves NCLT to recover Rs 31 cr loan from DB Realty
DB Realty said that "settlement talks" are in progress between the two companies. (Representative Image)
NEW DELHI: LIC Housing Finance has filed an application before the National Company Law Tribunal ( NCLT) to start insolvency process against DB Realty for recovery of Rs 30.63 crore outstanding loan, the Mumbai-based developer said.
DB Realty said both the parties are in talks to settle this outstanding loan.
In a filing to the BSE, DB Realty informed that the company had availed of Rs 200 crore loan from LIC Housing Finance Ltd in January 2010 and out of that, Rs 188 crore were disbursed to it.
The developer repaid Rs 157.37 crore to LIC Housing Finance within 18 months from the disbursement and the balance loan outstanding is Rs 30.63 crore.
"LIC Housing Finance has filed an application by financial creditor to initiate corporate insolvency resolution process under the code at the NCLT Mumbai against DB Realty for recovery of this outstanding money," the filing said, adding that the matter is pending admission before the NCLT.
DB Realty said that "settlement talks" are in progress between the two companies.
"The matter is posted under the caption 'For Settlement' in the NCLT on October 16 and the company is hopeful of a positive outcome in view of settlement talks, which are in progress," DB Realty said.
In the Delhi-NCR property market, insolvency proceedings have started in Jaypee Infratechand Amrapali group company.
Many developers have defaulted in repayment of their bank loans.
- So far they have not during the posession time 7 lacsCommentQuote0Flag
- Debt hit DB Realty referred to NCLT by LIC Housing Finance DB Realty has said that its lender LIC Housing Finance has referred the company to the Mumbai bench of the National Company Law Tribunal (NCLT). The Mumbai-based realtor said in a recent regulatory filing that the case is listed under the caption ‘for settlement’ on October 16. DB Realty said it had availed a loan The Mumbai-based realtor said in a recent regulatory filing that the case is listed under the caption ‘for settlement’ on October 16. (Reuters)
DB Realty has said that its lender LIC Housing Finance has referred the company to the Mumbai bench of the National Company Law Tribunal (NCLT).
The Mumbai-based realtor said in a recent regulatory filing that the case is listed under the caption ‘for settlement’ on October 16. DB Realty said it had availed a loan of Rs 200 crore from LIC Housing Finance in January 2010 and Rs 88 crore was disbursed. Of the disbursed loan, Rs 157.37 crore was repaid and the rest—`30.63 crore—is outstanding. “LIC has filed an application by financial creditor to initiate corporate insolvency resolution process under the code at the NCLT Mumbai against DB Realty for recovery of this outstanding money,” the company said.
It added the matter is pending admission before the NCLT. “Settlement talks are in progress between LIC and DB Realty,” it said. Bankers to the company include Oriental Bank of Commerce, ICICI Bank and HDFC Bank.
According to DB Realty’s FY17 annual report, the company has defaulted in repaying interest of Rs 13.4 crore to Reliance Capital, Rs 3 crore to ICICI Bank (principal and interest) and Rs 32 lakh in interest to Indiabulls Housing Finance. The company’s gross debt stood Rs 1,374 crore in FY17, down from Rs 1,405 crore in the previous year. It reported a net profit of Rs 1.43 crore on Rs 13.78 crore in revenues in FY17.
The Reserve Bank of India had on June 13 asked banks to refer a dozen troubled companies with a combined debt of close to Rs 2.4 lakh crore to the NCLT, following several failed attempts at loan recovery.
Under the Insolvency and Bankruptcy Code, the interim resolution professional gets 180 days to submit a restructuring plan for the company and the timeline can be extended by another 90 days. If the company fail
- LIC Housing withdraws NCLT plea against DB Realty
NEW DELHI: LIC Housing Finance has settled loan dispute with DB Realty and also withdrawn its application before the National Company Law Tribunal to start insolvency process against the builder for recovery of Rs 31 crore debt.
In a filing with the BSE, DB Realty informed that the company and LIC HousingFinance have "arrived at a settlement and have executed a debt settlement agreement".
"Pursuant thereto, LIC has on October 16 withdrawn an application made by it in the National Company Law Tribunal (NCLT) Mumbai against DB Realty and the said application by LIC therefor stands disposed off as withdrawn," the filing said.
DB Realty said that there are no bankruptcy proceedings pending against the company.
LIC Housing Finance had filed an application before the NCLT to start insolvency process against DB Realty for recovery of Rs 30.63 crore outstanding loan.
Earlier, DB Realty had said the company availed of Rs 200 crore loan from LIC Housing Finance Ltd in January 2010 and out of that, Rs 188 crore were disbursed to it.
The developer had repaid Rs 157.37 crore to LIC Housing Finance within 18 months from the disbursement and the balance loan outstanding remained at Rs 30.63 crore.
In the Delhi-NCR property market, insolvency proceedings have started in Jaypee Infratech and Amrapali group company.
The real estate sector is facing a multi-year demand slowdown, resulting in huge delays in delivery of flats, forcing buyers to go on protest at sites and file legal cases in courts.
Many developers have defaulted in repayment of their bank loans.
- MahaRERA dismisses realtor’s ‘slowdown’ argument for delays The developer informed that because of economic downturn, it could not sell flats and generate funds for construction of the project located in the northern fringes of Mumbai. By Kailash Babar, ET Bureau | Jan 01, 2019, 11.55 AM IST Home buyers had moved the authority against the developer after it failed to deliver the apartments at its project DB Ozone in Mira Road near Mumbai.
MUMBAI: The Maharashtra Real Estate Regulatory Authority has refused to entertain realty developer Neelkamal Realtors’ argument of general economic slowdown for its inability to adhere to the delivery schedule it had promised the home buyers.
The developer informed the authority that because of economic downturn/crises, it could not sell flats and generate funds for construction of the project located in the northern fringes of Mumbai.
MahaRERA in its recent order said that the Indian economy has shown consistent growth over the last so many years without any major incidents of recession or inflation. Also, a builder should have sound knowledge of the industry. Thus, it didn’t consider this as one of the several reasons cited by the developer for delays, asking it instead to pay penal interest to home buyers.
“…Having sound knowledge in the real estate sector, the developer was fully aware of the market risks when he launched the project and signed the agreement with home buyers. Moreover, the nation’s economy as a whole has shown consistent growth over the last so many years without any major incidents of recession or inflation,” said the MahaRERA order.
Home buyers had moved the authority against the developer after it failed to deliver the apartments at its project DB Ozone in Mira Road near Mumbai in December 2015 even after the grace period of 12 months from the scheduled possession date. The developer, in its response, also pointed out that the project got delayed because of the ban on sand and stone mining. However, the authority rejected this argument as well.
According to the authority, the ban was placed in 2007 and lifted in 2014. But the agreement was executed in 2013 and the developer was well aware of all these constraints, the order said.