LIC Housing Finance Seizes Subhash Chandra's Property Due to Rs 570 Crore Unpaid Dues

LIC Housing Finance has taken symbolic possession of a property in Churchgate, owned by Essel Group chairman Subhash Chandra, due to his failure to repay a loan of approximately Rs 570 crore. The property in question is located in the Backbay Reclamation Estate in Mumbai's Churchgate area, as indicated in a newspaper advertisement by LIC Housing Finance. The lender had issued a demand notice on 13 December 2021, to the borrowers, Vasant Sagar Properties and Pan India Infraprojects, as well as guarantor Subhash Chandra, requesting repayment of the total amount within 60 days.

According to the newspaper advertisement, since the borrowers and guarantors failed to repay the amount, LIC Housing Finance has exercised its powers under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to take symbolic possession of the property. The advertisement also serves as a warning to both the borrowers, guarantors, and the general public not to engage in any dealings with the property.

Furthermore, the newspaper advert explicitly states that any transactions involving the property will be at the charge of LIC Housing Finance, which is seeking to recover the outstanding amount of around Rs 570 crore, in addition to interest and other charges.

Turning to LIC Housing Finance's financial performance in Q1 2023, the company reported a notable 43 per cent increase in standalone net profit, reaching Rs 1,324 crore. This impressive growth was attributed to strong demand for housing loans. In comparison, the company had posted a net profit of Rs 925 crore in the same period the previous year. Additionally, LIC Housing Finance's net interest income (NII) saw substantial growth, rising by 38 per cent to reach Rs 2,252 crore for the quarter ending 30 June 2023.