Reliance Home Finance Ltd (RHFL) said Saturday that it has default loan repayment of more than Rs 40 crore from Punjab & Sind Bank, even if the company has enough cash and cash equivalents that it cannot use due to a court order.
The Anil Ambani-controlled Reliance Capital’s subsidiary defaulted on the mortgage on February 15, 2021, and the current amount of default is Rs 40 lakh as well as Rs 15 lakh.
Reliance Home Finance (RHFL) said in a regulatory deposit that the entire liability of the corporate is Rs 200 crore from Punjab and Sindh Financial Institution, which is on a mortgage of 5 years each of 9.25 percent each year. The company said that the company has more than Rs 1,500 crore in cash (including cash equivalents, liquid mutual fund investments, fixed deposits, etc.).
“However, as per the order passed by the High Court in Delhi, dated November 20, 2019, the reason for the delay in servicing the loan was to restrict the company, isolate, directly or indirectly, or possession of any property part with. The court stated“.
RHFL stated the lenders of the corporate are already into an Inter-Creditor Settlement (ICA) for arriving on the debt decision plan following RBI’s Prudential Framework for Decision of Careworn Belongings.
Major Key Features-
- This has resulted in the delay in debt servicing by the corporate, RHFL added.
- The corporate’s complete excellent borrowings from banks and monetary establishments is Rs 4,358.48 crore.
- The entire monetary indebtedness of the listed entity, together with short-term and long-term debt, amounted to Rs.13,126.94 crore, together with curiosity on February 28, 2021.
The Courtroom Order for Reliance Home Finance Ltd (RHFL)-
- The courtroom order pertains to a coercive keep obtained by the Shapoorji Pallonji (SP) Group from the Delhi Excessive Courtroom towards Reliance Home Finance (RHFL) in November 2019.
- By order, RHFL is prohibited from directly or indirectly either alienating, segregating, or otherwise with possession of any of its assets, thus directly affecting the ongoing debt resolution.
- Even as RHFL has received attractive bids under the corporate resolution plan, as long as it is in the final stages, an early resolution may be hampered due to a court order.
As Per the Sources-
- The lenders cannot proceed with the resolution process due to the stay order.
- Separately, Reliance Home Finance (RHFL) said the National Housing Bank (NHB) has imposed a penalty of Rs 30,000 on the company for contravention of certain provisions.
For daily news updates related to finance, business and sports keep following our portal Daily News Capsule
Nikita Dhyani is a passionate writer. She basically writes on Health, Finance, and Politics related topics. She has explored many areas of interest and is being a part of the journalism industry.