LIC Housing Finance takes possession of Subhash Chandra-owned property over unpaid dues worth Rs 570 crore

LIC Housing Finance has taken a “symbolic possession” of a Churchgate property owned by Essel Group chairman Subhash Chandra. LIC Housing Finance has taken possession of the property due to Chandra’s failure to repay a loan worth around Rs 570 crore.

The property in question is a plot in Backbay Reclamation Estate in Mumbai’s Churchgate area, according to a newspaper advertisement issued by LIC Housing Finance. The property’s address is Plot No.11, CS No. 1689 of Fort Division & Bearing Municipal A Ward No 3664/14, 3664/A14, Street No. 13, Road No. A, Block I of Backbay Reclamation Estate, Churchgate, Mumbai- 400020.

It further said that LIC Housing Finance issued a demand notice on December 13, 2021, and called upon borrowers—Vasant Sagar Properties and Pan India Infraprojects—and guarantor Subhash Chandra—to repay the aggregate amount of around Rs 570 crore within a period of 60 days.

 “The borrowers/guarantors mentioned hereinabove having failed to repay the amount, notice is hereby given to the borrowers/guarantors mentioned hereinabove in particular and to the public in general that the undersigned has taken Symbolic Possession of the assets described herein below in exercise of powers conferred on him under Section 13 (4) of the said Act read with Rule 8 of the Securitisation (Enforcement) Rules, 2002, on this 28th day of September of the year 2023,” the newspaper advert by LIC Housing Finance read.

The lender has taken symbolic possession of the property under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Borrowers and guarantors in particular and the public in general have also been warned to not deal with the property.

The newspaper advert also mentioned that any dealings with the property will be to the charge of LIC Housing Finance for an amount of around Rs 570 crore coupled with interest and other charges.

LIC Housing Finance Q1 results

In Q1 2023, LIC Housing Finance posted a 43 per cent rise in its standalone net profit at Rs 1,324 crore on the back of strong demand for housing loans. The company posted a net profit worth Rs 925 crore in the same period last year. LIC Housing Finance’s net interest income (NII) grew 38 per cent to Rs 2,252 crore in the quarter ending June 30 this year.

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