PNB Housing Finance to auction Vipul Ltd Project in Gurugram

NEW DELHI: PNB Housing Finance Ltd will auction 19.24 acres of land and 138 unsold units of a Gurugram-based project owned by Vipul Ltd, following a default by the developer on a Rs 377 crore loan.
The auction, with a reserve price of Rs 452.58 crore for both assets, will take place on August 6.

According to the notice, a copy of which ET has reviewed, developers can submit bids independently or through a joint venture, by August 5.

PNB had taken possession of the property -- “Aarohan Residences” located at Golf Course Road -- on May 20 after the borrower failed to repay the loan despite repeated reminders.

Vipul Ltd and PNB Housing Finance did not respond to ET’s emailed queries till press time Friday.

The public auction was announced after the Delhi High Court permitted PNB Housing Finance to pursue remedies available under the law in an arbitration petition seeking interim relief, an official aware of the matter said.

The lender had sent a notice to the BSE-listed developer in February, demanding repayment of the loan. It had also threatened to take over the company’s management and project under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

The Delhi High Court had directed Vipul to pay Rs 25 crore by March-end. Last month, the Court allowed Vipul three more months to pay Rs 25 crore to the lender as the mediation process could not be completed following the lockdown imposed due to the Covid-19 pandemic and disruption in physical functioning of courts.

Vipul caters to both residential and commercial segments in markets such as Ludhiana, Bhubaneswar and Faridabad, besides Gurugram, and has a portfolio of more than 10 million square feet of delivered properties.

The developer’s account was classified as a non-performing asset since January, after it failed to pay loan instalments.