The bank had decided to go for auction following a default by the developer on a Rs 377 crore loan.
The auction, with a reserve price of Rs 452.58 crore for both assets, failed to attract any bidder.
As per an estimate by PNB, the market value of the property was Rs 603 but since it was a distressed sale, they reduced the value by 25% in the first auction itself.
“There are collateral risks involved in acquiring a property via DRT versus NCLT, which the buyer might get to know after acquiring it. So for PNB to sell it, the pricing has to factor in any potential unaccounted liabilities and be very attractive. Otherwise they will have to wait longer to dispose off the asset, most likely till after the NCLT suspension is revoked,” said Anckur Srivasttava of GenReal Advisers.
Vipul had approached the Debt Recovery Tribunal (DRT), Delhi seeking stay on the auction.
However on August 5, the tribunal said that no stay/ no interim relief has been granted to Vipul Ltd.
The debt tribunal had also said that if PNB is not able to find any bidder, it can approach Vipul for settlement.
Both PNBHFL and Vipul did not respond to the query till press time.
PNB had taken possession of the property — “Aarohan Residences” located at Golf Course Road — on May 20 after the borrower failed to repay the loan despite repeated reminders.
Due to technical reasons, PNBHFL had given back the possession to Vipul for a day and then taken it back.
The public auction was announced after the Delhi High Court permitted PNB Housing Finance to pursue remedies available under the law in an arbitration petition seeking interim relief, an official aware of the matter said.
The lender had sent a notice to the BSE-listed developer in February, demanding repayment of the loan. It had also threatened to take over the company’s management and project under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The Delhi High Court had directed Vipul to pay Rs 25 crore by March-end. Last month, the Court allowed Vipul three more months to pay Rs 25 crore to the lender as the mediation process could not be completed following the lockdown imposed due to the Covid-19 pandemic and disruption in physical functioning of courts.
Vipul caters to both residential and commercial segments in markets such as Ludhiana, Bhubaneswar and Faridabad, besides Gurugram, and has a portfolio of more than 10 million square feet of delivered properties.
The developer’s account was classified as a non-performing asset since January, after it failed to pay loan instalments.