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The MUDA officer said the low rating had no effect on the company as “no fresh loans” were taken in the financial year or will be taken soon. “We missed deadlines for repayment. We have repaid some part of the loans. No new projects had been started in the past two years and so there was little expenditure.” However, the problems with cash flow remain. Land purchase, development, a series of litigation, land acquisition problems, and increasing costs have delayed projects. “Because of this, the layout is incomplete and we’ve little revenue. We got low ratings last time because we missed out on repaying,” he said.

Keeping this in mind, MUDA, which had taken loans for a 200-acre residential layout, with 3,695 sites, has sent a proposal to the government. “Till the proposal is cleaered, none of the parameters for a better rating will come into effect,” said the officer.