HDFC sells mortgaged land to Lodha for Rs 70 crore

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HDFC Ltd sold a plot of land in Mumbai to a Macrotech Developer (Lodha) for Rs 70 crore under the Securitization, Reconstruction of Financial Asset and Enforcement of Security Interest Act (SARFAESI), to recover a loan from a defaulted borrower.

Neptune Ventures and Developers has borrowed Rs 250 crore from HDFC as a construction financing loan for a project called ‘Flying Kite and Eleve’ in the suburb of Kanjurmarg, east Mumbai. The land was mortgaged to the lender under the terms of the loan agreement.

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HDFC has sold 27,792 square meters of the total area of ​​35,645 square metres. The remaining land is occupied by the Flying Kite project, with more than 400 units sold, according to registration documents provided by data intelligence platform Propstack.

HDFC sold the land to Macrotech on a “no recourse” basis, meaning that the buyer accepts all risk associated with the purchase and the seller bears no responsibility.

The mortgage lender has sent demand notices to the real estate developer since 2021 for repayment of the loan, but the developer has been unable to comply. A newspaper advertisement on the sale of the property, made in January 2022, declared the dues owed to HDFC in excess of Rs 303 crore.

Neptune Ventures is under bankruptcy proceedings from August last year, after it was dragged into court by a financial creditor for non-payment of dues of more than Rs 17,000.

According to information from various online housing websites, the ‘Flying Kite’ project was launched in 2012 and the acquisition process began in 2017.