Type to search

Accepted Rs280 crore Mortgage for a Property


Accepted Rs280 crore Mortgage for a Property


Every passing day, some new revelations may emerge from the mess of Infrastructure Leasing and Financial Services (IL&FS) and its 348 institution corporations. IL&FS Trust Co Ltd, a subsidiary of an IL&FS organization, universal costs Rs280 crore as the mortgage for assets offered on an identical day for Rs272 crore. On the same day, IL&FS Trust Co subscribed to privately located VGN Developers Pvt Ltd debentures, well worth Rs280 crore, a famous record. According to the file from Savukkuonline (https://www.Savukkuonline.Com/14806/), VGN Developers Pvt Ltd paid Rs272 crore for an 11.021-acre property in Guindy belonging to Chennai-based totally Hindustan Teleprinters Ltd (HTL). In the bidding method with bankers led with the aid of the State Bank of India (SBI),

Image result for Accepted Rs280 crore Mortgage for a Property

the report says that VGN Developers turned into the sole bidder who proposed Rs272 crore for the belongings. “On an equal day, the deal turned finalized, VGN Developers mortgaged the belongings to IL&FS Trust Co for Rs280 crore. While ordinary banking is widespread to pay eighty% of the mortgaged belongings fee as the loan, VGN Developers bought these belongings for Rs272 crore and mortgaged the equal for Rs280 crore,” the document says. From the agreement, it seems that IL&FS Trust subscribed to VGN Developer’s privately positioned debentures worth Rs280 crore on the day of the deal. Questioning the purpose in the back of this,

Rajendra M. Ganatra, an insolvency decision professional and restructuring consultant, says, “For this type of investment, there needs to be due diligence of the sponsor, the identity search, the valuation, and many other things. Here, VGN Developer got the investment with a bad contribution of Rs8 crore. On the day of the shady Rs272 crore land deal of VGN Developers, IL&FS gave Rs280 crore of VGN’s rated, listed debentures. Who rated the debentures, and in which changed into it listed? (This) smacks of Crook Nexus. No prudent lender can do this. That is how a favored organization has been destroyed. There is a want for the complete investigative audit of an IL&FS institution.”

Image result for Accepted Rs280 crore Mortgage for a Property

The consortium of banks headed using SBI fixed the HTL belongings’ reserve rate at Rs250 crore and finalized the deal on 19 June 2013 for Rs272 crore with VGN Developers. “As per registration department statistics, the guideline price of the stated land involves Rs376.26 crore as of 19 June 2013, when the sale was finalized. VGN Developers paid a stamp responsibility for a price of Rs376.26 crore and not for the actual sale price of Rs272 crore,” the file says.

Savukkuonline says the HTL land is a high-cost asset. “The land has a permissible built-up space of 2.5 times the land area. Since the land has been reclassified from ‘business’ to ‘residential,’ its marketplace fee might be more than the guideline cost fixed by the government. Further, the land is in Guindy, which has locational benefits, a nearby airport, and metro connectivity. As in line with the advertisement in newspapers for a realty assignment close to the land offered by VGN Developers, the asking price turned to Rs12,000 per square foot. However, the sale fee was finalized far under the marketplace or tenet value.”

The main query is why a subsidiary of the IL&FS institution could accept a higher price for a loan while the belongings became sold for less?

According to the information compiled by REDD Intelligence, the debt-ridden IL&FS group holds property of around Rs1, sixty-five,000 crores. Its corresponding overall liabilities are around Rs1,32,000 crore. The reported consolidated liabilities at IL&FS (conserving company) are around Rs1,06,500 crore, and inter-group liabilities are around Rs25,500 crore. Similarly, inter-institution belongings come to around Rs49,000 crore, indicating fairness of Rs23,500 for most group corporations.

The IL&FS story started unraveling after Moneylife wrote approximately its default to SIDBI. (Read: IL&FS defaults on Rs1,000 Crore Short-time period Loan from SIDBI?) Despite going for walks rankings of different initiatives and corporations, IL&FS has said a loss or meager earnings during the last three years for which records are available. Over the past 10 days, many of these sufferers have started to speak out, specifically after the gold-plating of the GIFT City project was exposed with the aid of Moneylife.

Jacklyn J. Dyer

Friend of animals everywhere. Problem solver. Falls down a lot. Hardcore social media advocate. Managed a small team training dolls with no outside help. Spent high school summers creating marketing channels for Elvis Presley in Minneapolis, MN. Prior to my current job I was donating wooden trains in Hanford, CA. Spent the 80's getting my feet wet with accordians in Jacksonville, FL. Spent the 80's writing about crayon art in Africa. Managed a small team getting to know inflatable dolls in Gainesville, FL.