MUMBAI: Mumbai police has arrested Pujit Aggarwal, MD & CEO of realty developer Orbit Corporation under charges of cheating and violation of Maharashtra Ownership Flat Act, 1963. The arrest has been made following an FIR filed by financial institution Capri Global Capital Ltd.
The financial institution had bought three apartments at Orbit Corp’s project Orbit Residency Park at Andheri suburb of Mumbai for Rs 2.55 crore in 2008. However, the money was never deposited into an escrow account which was supposed maintained as part of the developer’s agreement with its lender LIC Housing Finance.
ET had reported in June 2015 that following a default on loan repayment, LIC Housing Finance had put part of Orbit Corporation's several projects including Orbit Residency on block to recover its dues. LIC Housing Finance had taken possession of the property following the developer defaulting on loans worth 96 crore out of total dues of Rs 250 crore.
The lender has invited bids under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest price of Rs 125 crore for the project.
“We had invested Rs. 2.55 crore in three flats in Orbit Residency Park, Sakinaka that was promoted by Pujit Aggarwal and his father Ravikiran Aggarwal. They had mortgaged the project with LIC Housing Finance Limited and were supposed to deposit sale proceeds of all the flats in an escrow account with HDFC bank. Aggarwals cheated us by not depositing the money in that account and so when LICHFL took over the possession after they failed to repay the loan, they de-recognized many investors like us,” said a spokesperson of Capri Global Capital.
LIC Housing Finance had marked nearly 26,000 sq ft at Orbit Corporation's Lower Parel project Orbit Grand, 1.70 lakh sq ft at project Orbit Residency Park in Andheri and 45,600 sq ft space at Orbit Midtown at Lower Parel for its dues. The company had secured loans from LIC Housing Finance through personal guarantees executed by its directors Ravikiran Aggarwal and Pujit Aggarwal.
In August 2013, the Mumbai-based real estate developer had defaulted on liabilities including repayment of loan availed from LIC Housing Finance and the interest on the amount, joining the list of troubled players in the industry grappling with a severe liquidity crunch.
The housing finance company had then classified the account as a non-performing asset and served a recovery notice to the developer known for its premium south and central Mumbai developments.
The lender had also restrained the developer from creating any third-party rights on over 2.40 lakh sq ft across three of its projects that were mortgaged for securing the loan along with hypothecated receivables from seven of its luxury projects.
The financial institution had bought three apartments at Orbit Corp’s project Orbit Residency Park at Andheri suburb of Mumbai for Rs 2.55 crore in 2008. However, the money was never deposited into an escrow account which was supposed maintained as part of the developer’s agreement with its lender LIC Housing Finance.
ET had reported in June 2015 that following a default on loan repayment, LIC Housing Finance had put part of Orbit Corporation's several projects including Orbit Residency on block to recover its dues. LIC Housing Finance had taken possession of the property following the developer defaulting on loans worth 96 crore out of total dues of Rs 250 crore.
The lender has invited bids under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest price of Rs 125 crore for the project.
“We had invested Rs. 2.55 crore in three flats in Orbit Residency Park, Sakinaka that was promoted by Pujit Aggarwal and his father Ravikiran Aggarwal. They had mortgaged the project with LIC Housing Finance Limited and were supposed to deposit sale proceeds of all the flats in an escrow account with HDFC bank. Aggarwals cheated us by not depositing the money in that account and so when LICHFL took over the possession after they failed to repay the loan, they de-recognized many investors like us,” said a spokesperson of Capri Global Capital.
LIC Housing Finance had marked nearly 26,000 sq ft at Orbit Corporation's Lower Parel project Orbit Grand, 1.70 lakh sq ft at project Orbit Residency Park in Andheri and 45,600 sq ft space at Orbit Midtown at Lower Parel for its dues. The company had secured loans from LIC Housing Finance through personal guarantees executed by its directors Ravikiran Aggarwal and Pujit Aggarwal.
In August 2013, the Mumbai-based real estate developer had defaulted on liabilities including repayment of loan availed from LIC Housing Finance and the interest on the amount, joining the list of troubled players in the industry grappling with a severe liquidity crunch.
The housing finance company had then classified the account as a non-performing asset and served a recovery notice to the developer known for its premium south and central Mumbai developments.
The lender had also restrained the developer from creating any third-party rights on over 2.40 lakh sq ft across three of its projects that were mortgaged for securing the loan along with hypothecated receivables from seven of its luxury projects.
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