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LIC warns of ‘all measures’ to get dues from Unitech

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Mumbai: Life insurance major LIC today said real estate developer Unitech’s Rs 200-crore loan account continues to remain sub-standard and it will pursue all options to recover the money.

It also said all processes, as prescribed by the Reserve Bank and the government to deal with wilful defaulters, will be initiated if Unitech fails to repay the dues on time.

“Unitech’s account as of today remains sub-standard. Unless they repay the amount, due processes will be followed,” a top company official told PTI when asked about the media reports which said the insurance behemoth has taken a “notional possession” of a slice of Unitech’s 350-acre land parcel in Noida.


There were also reports that LIC had declared Unitech a “wilful defaulter”.

Unitech had taken Rs 200-crore loan from LIC in 2007 for a project in Noida.

Last December, the nations’ largest financial institution had issued a notice to Unitech after it defaulted on one of the instalments.

When contacted, a Unitech company official claimed the loan has been served regularly and all the dues will be cleared in the next few days.

Meanwhile, sources told PTI that Unitech has sold almost 10 acres in Bangalore and Mysore for Rs 100-130 crore as part of its strategy to repay the debt. The company currently has debt of about Rs 6,200 crore in its books, including Rs 200 crore from LIC.

LIC warns of ‘all measures’ to get dues from Unitech
Mumbai, Mar 11 (PTI) Life insurance major LIC today said
real estate developer Unitech’s Rs 200-crore loan account
continues to remain sub-standard and it will pursue all
options to recover the money.
It also said all processes, as prescribed by the Reserve
Bank and the government to deal with wilful defaulters, will
be initiated if Unitech fails to repay the dues on time.
“Unitech’s account as of today remains sub-standard.
Unless they repay the amount, due processes will be followed,”
a top company official told PTI when asked about the media
reports which said the insurance behemoth has taken a
“notional possession” of a slice of Unitech’s 350-acre land
parcel in Noida.
There were also reports that LIC had declared Unitech a
“wilful defaulter”.
Unitech had taken Rs 200-crore loan from LIC in 2007 for a
project in Noida.
Last December, the nations’ largest financial institution
had issued a notice to Unitech after it defaulted on one of
the instalments.
When contacted, a Unitech company official claimed the
loan has been served regularly and all the dues will be
cleared in the next few days.
Meanwhile, sources told PTI that Unitech has sold almost
10 acres in Bangalore and Mysore for Rs 100-130 crore as part
of its strategy to repay the debt. The company currently has
debt of about Rs 6,200 crore in its books, including Rs 200
crore from LIC.