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| Edited By: Vivek Seal |Source: DNA |Updated: Mar 17, 2018, 02:43 AM IST
New-Delhi-based Parsvnath Developers is in the process of raising Rs 100 crore by way of refunds from various state governments due to cancelled or stalled projects.
The developer wants to monetise the delayed projects since it sees no possibility of going through with them. It is thus seeking refunds on projects where clear titles have not been obtained.
The firm is seeking refunds to the tune of Rs 25 crore from a housing project in Ranchi that could not be completed due to the government’s inability to procure land.
Similarly, it is seeking Rs 19 crore from the Malerkotla project in Punjab by selling land. It has also written to the state government to surrender the film city project in Chandigarh for Rs 48 crore, as well as the Mahim (in Mumbai) bus terminal project for Rs 8 crore.
Last year, Parsvnath was able to get refunds of over Rs 200 crore from a group housing project at Sector 116 in Noida.
Parsvnath’s spokesperson was unavailable for comment.
In an earlier statement, the developer said it is looking at raising Rs 242 crore by March end by diluting more stake to private equity (PE) investors at the project level.
So far this fiscal, the developer has raised Rs 115 crore from Red Fort Capital in two tranches, Rs 168 crore through a qualified institutional placement (QIP) and Rs 75 crore from SUN-Apollo, a real estate private equity fund.
Meanwhile, the realtor is also looking to leverage its in-house construction and purchase division for contracting business, along with external construction contracts. It is looking at sales of Rs 310 crore from these external projects.
Several developers are looking to exit the stalled projects since the government has been unable to provide clear land titles.
Recently, DLF Developers got a licence fee refund of Rs 200 crore from the Haryana government, due to the obstacles in its commercial projects caused by slow execution by the government authorities.
Last year, another New Delhi-based developer cancelled a land deal worth Rs 5,000 crore with the Noida Authority in Uttar Pradesh as it was not able to make the payments.
