LIC Housing takes possession of Orbit's premium property

MUMBAI: LIC Housing Finance Ltd ( LICHFL has taken possession of Orbit Corporation's 35-storeyed premium residential tower in central Mumbai here after the realty player failed to repay a Rs 95.50 crore loan.

The realty firm had borrowed the money from LICHFL and the 25,670 sq ft property was a collateral for the loan, which had Orbit Manging Director Punit Agarwal and Chairman Ravikiran Agarwal as the guarantors.

LICHFL, in a public notice, said it took physical possession of the tower on December 24 after serving the company a loan demand notice on February 21 last year.

The property, Orbit Grand, is located in Lower Parel area, which has been witnessing construction of a slew of real estate projects in the recent past.

However, 16 flats have been excluded from the mortgage, LICHFL said.

Orbit, in a statement to the BSE, said, "We would like to inform you that LICHFL has taken the possession (of the building). However, DRT (Debts Recovery Tribunal) has allowed us the access to carry out construction work at site."