Co has defaulted on loan repayment to LIC Housing Finance, Reliance Capital, ICICI Bank and Indiabulls Housing
DB Realty, the group allegedly linked with 2G spectrum scam, has defaulted on repayment of debt and deposits of provident fund, employees' state insurance and various taxes.
While the default in the payment of taxes has been happening since April 2010, the Shahid Balwa-led firm has defaulted on debt repayment in the last fiscal.
The company defaulted on loan repayment to LIC Housing Finance since January last year. During this calendar year till March, it has not paid its dues to Reliance Capital, ICICI Bank and Indiabulls Housing Finance, according to the annual report of the company for fiscal 2017.
Between January 2016 and March 2017, the company has defaulted on loan payments to the tune of Rs 53.85 crore. An amount of Rs 5.89 crore is to be paid to the authorities as service tax, wealth tax, property tax and value-added tax, due between April 2010 and September 2016.
Also, income tax payment of Rs 6.63 crore is pending for the assessment years 2012-13, 2013-14 and 2014-15, but it is under dispute.
"The company is not regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees' state insurance, income tax, value-added tax, cess and other material statutory dues applicable to it, and there have been serious delays in a few cases. As explained to us, the provisions regarding sales tax, customs duty and excise duty are presently not applicable to the company," reads a note by independent auditors in DB Realty's annual report for the last financial year.
According to the report, the real estate developer has defaulted on interest payment of Rs 3,228,012 to Indiabulls Housing Finance in March.
Similarly, between January and March this year, the company did not pay the principal amount of Rs 22,327,330 and interest of Rs 26,33,975 to ICICI Bank. Additionally, in February and March, it defaulted on interest payment of Rs 24,11,176 and Rs 27,01,770, respectively, to the bank.
From January this year, the developer has also defaulted in paying interest of Rs 134,745,484 to Reliance Capital.
Likewise, since January 2016, it has not paid LIC Housing Finance principal and interest to the tune of Rs 370,481,067.
As of fiscal 2017-end, DB Realty's total current liabilities, or amounts due to be paid to creditors within twelve months, increased 39% year on year to Rs 2,523.9 crore, as against Rs 1,818.7 crore a year ago.
Of the total Rs 2,523.9 crore, the company managed to bring down short-term borrowings from Rs 347.7 crore to Rs 262.2 crore during the year. However, other current liabilities shot up Rs 781 crore to Rs 2,068 crore by 2016-17-end.
In 2008, DB Realty's Swan Telecom was allotted 2G spectrum licences for 15 circles and later partnered with Etisalat.
MONEY TROUBLE
- Between January 2016 and March 2017, the company has defaulted on loan payments to the tune of Rs 53.85 crore
- An amount of Rs 5.89 crore is to be paid to the authorities towards between April 2010 and September 2016
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