JM Financial ARC Says Acquired Unitech Loan In 2016, No New Debt Taken Over

JM Financial Asset Restructuring Co. Ltd. on Wednesday said it took over Unitech Ltd.'s loan from a financial institution in November 2016 and no new debt of the realty firm has been acquired thereafter.

The firm disbursed some funds over a period of time to help Unitech restart/complete certain projects, JM Financial ARC said in a statement.

"JM Financial ARC had taken over debts pertaining to Unitech Group from a financial institution in November 2016. As part of restructuring of the debts so taken over, some funds were provided to them to help them restart/complete certain of their projects," the statement said. The funds were disbursed by JM Financial ARC over a period of time from the date of taking over their debts, it further said.

JM Financial ARC has taken over debts and provided additional loans as a lender and has not taken over projects, it said, adding that the asset restructuring firm does not control or manage the projects.

The Gurugram-based developer had 74 pending real estate projects, comprising 16,500 housing units, in August 2017, when its two managing directors Sanjay Chandra and Ajay Chandra were arrested.

In the last two years, the company has completed about 22 projects comprising 4,000 units, while 52 projects are still incomplete, according to sources.

Chandra brothers were arrested after some homebuyers dragged the company and its directors to court for non-delivery of their apartments and sought refund.

A bail application was filed before the Supreme Court, but the apex court had directed Unitech to first deposit Rs 750 crore in the registry. The realty firm has so far deposited about Rs 480 crore.

To secure bail of its two directors, Unitech is in process of monetising its land bank to raise funds and deposit the same with the registry, they added.

This story has been updated to fix errors in an earlier version.