State-owned Central Bank of India has declared the directors of real estate developer Unitech as defaulters for not making a payment of ₹38 crore.

In a public notice, the bank said: “It is hereby notified to the public at large that Unitech Ltd through its directors has availed credit facilities to the tune of ₹300 crore from Central Bank of India. The amount was declared NPA on October 30, 2015.

“As on November 18, 2015, the borrower is liable to pay a sum of ₹38.5 crore with further interest w.e.f. November 19, 2015, and other expenses/costs to the bank. Despite repeated demand the borrowers have failed to make any payment after October 1, 2015.”

When contacted, a Unitech spokesperson said: “Unitech has already repaid ₹264 crore out of the ₹300 crore taken as loan.

“The company expects to repay the outstanding amount within a short span of time. Unitech’s debt position remains comfortable and the company is committed towards meeting its obligations towards its lenders.”

Founded in 1971 by a group of technocrats, its directors include, among others, Ramesh Chandra and his two sons Sanjay Chandra, and Ajay Chandra.

The company has built more than 100 residential projects besides commercial and IT/ITeS spaces.

Dues to LIC

In 2014, state-owned insurer Life Insurance Corporation had reported Unitech to the Reserve Bank of India as a wilful defaulter for defaulting on a ₹200-crore loan it took from the insurance behemoth in 2007.

A wilful default is also declared when the unit has not only delayed repayment but has also not used the funds for the specified purposes for which the loans were taken.

Unitech’s consolidated net debt as of December 31, 2015, stood at ₹6,802 crore. Net debt-to-equity ratio for the company stood at 0.64.

Unitech reported a consolidated net loss of ₹16.10 crore in the December quarter on a sharp rise in finance cost.

At a recent analyst presentation, Unitech said its sales had increased 25 per cent to ₹832 crore during the April-December period of the current fiscal.

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