Non-payment of Rs 77.24 crore debt obligation by Peninsula Land

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The Ashoka Piramal Group is a Mumbai-based group in diverse business sectors. They run textile (Morarjee Textiles Ltd.), real estate (Peninsula Land), and engineering (Miranda Tools) businesses.

Peninsula Land is an incorporated real estate company. It is the first real estate company to be listed on the Indian stock exchange. World-class commercial projects, residential complexes, and pioneering retail ventures are some of the projects. The company is into creating international landmarks.

Ashok Piramal Group Company, Peninsula Land has failed to pay the loans and interest of total Rs 77.24 crore. The company has a remaining debt of Rs 730 crore.

The developer failed to make payments to RBL Bank, State Bank of India, and Axis Bank. The payment has a principal amount of Rs 67.6 crore and an interest amount of Rs 9.6 crore. The real estate developer fail to do its obligation on December 30.

The company has to pay a principal amount of Rs 66.14 crore to RBL Bank at an interest rate of 12.5%, 172 crores to State Bank of India at 9.05%, and Rs 18.63 crore to Axis Bank at 9.75% as on December 30. These are all secured loans mentioned by the company.

Peninsula land had failed to fulfill its obligation earlier too. In 2020, the developer did not pay an amount of Rs 2.35 crore to the State Bank of India. It had a principal amount of Rs 88 lakh and Rs 1.47 crore in accrued interest.

In 2019, the company joined with Housing Development Finance Corporation (HDFC) in a debt-asset swap arrangement against the hindrance of over 67000 sq ft commercial building Peninsula Spenta in central Mumbai’s Lower Parel Locality.

Crossroads, India’s first mall in South Mumbai and Peninsula Corporate Park (the first mill converted into a commercial complex), Lower Parel, in Central Mumbai’s Business district, were developed by this company.

The company established approximately 8 million sq ft in Mumbai, since 1997. Apart from Mumbai, Pune, Lonavala, Nashik, Banglore, and Goa are some places where the company had done its projects.

 In July 2019, the company debt level, which includes the project level debt was at Rs 2,310 crore and since then managed to reduce them.

In September, the company had a net loss of Rs 67.07 crore and a total income of Rs 71.38 crore.

Over the last quarters, the company has been continuously reporting a net loss. In the financial year 2020-21 (April- March), the company had a net loss of Rs 80.71 crore and a total income of Rs105.19 crore.

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