Non-banking finance company Indiabulls Housing Finance Ltd has approached the dedicated bankruptcy court on Friday with a plea to admit Mumbai-based realty development firm Radius Estate Projects under Corporate Insolvency Resolution Process (CIRP).
The realty firm owes over Rs 798 crore to Indiabulls Housing Finance.
This is the second such plea filed against the realty development company, which is also facing insolvency proceedings in a petition filed by SBICAP Trustee Company Ltd.
"This is a Section 7 petition filed against Radius on the basis of an outstanding debt in excess of ₹700 crore," argued advocate Nausher Kohli, appearing for Indiabulls Housing Finance.
The Mumbai bench of the National Company Law Tribunal (NCLT), led by Justice PN Deshmukh and Anuradha Bhatia, adjourned the matter to June 13 for further hearing.
Indiabulls Housing Finance had extended loans to a few subsidiaries of Radius Developers and managed to recover most of it through the sale of the latter's 7-lakh-sq-ft marquee office property ONE BKC in Mumbai's business district to Blackstone Group.
The US-based private equity major had acquired the property for ₹2,500 crore and Indiabulls Housing Finance, one of the key lenders to the developer then, was repaid ₹1,650 crore through this transaction.
The NBFC is now looking to recover the residual dues in the form of loans and interest thereon from the developer by moving NCLT against some of these subsidiaries invoking personal guarantees provided by its promoters.
ET's email query to Radius Developers remained unanswered till the time of going to press.
On March 28, in a plea filed by the SBICAP Trustee Company, the tribunal allowed an application by Piramal Capital & Housing Finance (PCHFL) that opposed the withdrawal of insolvency resolution against Radius Estate Projects.
In that case, Radius Estate Projects was admitted under the insolvency resolution laws in a petition filed by SBICAP Trustee Company, on behalf of its debenture holders, for a default of more than ₹23 crore.
However, the company's promoter, Anil Chhabria, approached the National Company Law Appellate Tribunal (NCLAT), seeking a stay on the constitution of the committee of creditors (CoC), arguing that Radius was settling the matter with the debenture holders.
Subsequently, the resolution professional of the company filed an application for the withdrawal of the insolvency petition as the promoters of Radius Estate Projects settled their dues with the debenture holders.
Opposing this withdrawal petition, Piramal Capital & Housing had argued that the developer owes over ₹2,444 crore to its lenders, while SBICAP Trustee supporting the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the builder, has a claim of only ₹32 crore, which is meagre of 1.22% of the total admitted claims.