Thu, 19th Dec 2013 12:00
LONDON (Alliance News) - India-focused residential builder Hirco PLC rejected claims that it bears responsibility for defaulted loans for township projects in Panevl and Chennai.
Hirco was responding to recent comments made by a spokesman for former chairman Nirnjan Hiranandani regarding his responsibility for the insolvency of the projects and suggestion that the firm holds responsibility.
Hirco said it had no physical present in India and was created to invest in foreign direct investment compliant Indian real estate development projects to be sourced by Hiranandani, his wife Kamal Hiranandani and entities controlled by them.
"In 2007, Hirco paid approximately GBP350 million into accounts controlled by Mauritius legal entities that in turn were controlled by Hiranandani family interests," Hirco said.
"That money was largely used to purchase 588 acres of land in Panvel and 368 acres of land in Chennai from Hiranandani-controlled entities," it added.
The firm said the acquired land was held by several Indian companies including Hiranandani Palace Gardens and Sunny Vista Realtors, which is controlled by the Hiranandani family.
Hirco said it was these legal entities that obtained line of credit totalling INR1,490 and borrowed money totalling around INR 1,384 from various Indian lenders including Yes Bank, Tata Capital and Punjab National Bank (PNB).
The firm said it has been informed that Hiranandani Palace Gardens and Sunny Vista Realtors defaulted on their obligations and currently owe these lending institutions approximately USD160 million.
Earlier this week, PNB placed a notice that Sunny Vista Realtor would be sold at auction in January 2014 to satisfy unpaid obligations to various lenders.
Hirco said it is not involved in borrowing this money and had no control or involvement in any of the affairs of Hiranandani Palace Gardens or Sunny Vista Realtors.
It also said it has no involvement in the development of the Panvel and Chennai projects or the sale of collection of money from the people who bough units in these developments.
These activities were carried out by another Hiranandani/Vandrevala controlled entity, Hiranandani Developments Private Limited, Hirco said.
"Hirco will continue to pursue redress against Niranjan Hiranandani and Priya Hiranandani, for fraud and other wrongdoing through the ongoing litigation and arbitration proceedings," it said. The stock was trading at 20.00 pence Thursday morning, down 0.25 pence or 1.2%.
LONDON (Alliance News) - India-focused residential builder Hirco PLC rejected claims that it bears responsibility for defaulted loans for township projects in Panevl and Chennai.
Hirco was responding to recent comments made by a spokesman for former chairman Nirnjan Hiranandani regarding his responsibility for the insolvency of the projects and suggestion that the firm holds responsibility.
Hirco said it had no physical present in India and was created to invest in foreign direct investment compliant Indian real estate development projects to be sourced by Hiranandani, his wife Kamal Hiranandani and entities controlled by them.
"In 2007, Hirco paid approximately GBP350 million into accounts controlled by Mauritius legal entities that in turn were controlled by Hiranandani family interests," Hirco said.
"That money was largely used to purchase 588 acres of land in Panvel and 368 acres of land in Chennai from Hiranandani-controlled entities," it added.
The firm said the acquired land was held by several Indian companies including Hiranandani Palace Gardens and Sunny Vista Realtors, which is controlled by the Hiranandani family.
Hirco said it was these legal entities that obtained line of credit totalling INR1,490 and borrowed money totalling around INR 1,384 from various Indian lenders including Yes Bank, Tata Capital and Punjab National Bank (PNB).
The firm said it has been informed that Hiranandani Palace Gardens and Sunny Vista Realtors defaulted on their obligations and currently owe these lending institutions approximately USD160 million.
Earlier this week, PNB placed a notice that Sunny Vista Realtor would be sold at auction in January 2014 to satisfy unpaid obligations to various lenders.
Hirco said it is not involved in borrowing this money and had no control or involvement in any of the affairs of Hiranandani Palace Gardens or Sunny Vista Realtors.
It also said it has no involvement in the development of the Panvel and Chennai projects or the sale of collection of money from the people who bough units in these developments.
These activities were carried out by another Hiranandani/Vandrevala controlled entity, Hiranandani Developments Private Limited, Hirco said.
"Hirco will continue to pursue redress against Niranjan Hiranandani and Priya Hiranandani, for fraud and other wrongdoing through the ongoing litigation and arbitration proceedings," it said. The stock was trading at 20.00 pence Thursday morning, down 0.25 pence or 1.2%.
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