Siva Shelters and Constructions Private Ltd. will settle its dues to IL&FS Financial Services, according to C. Sivasankaran, who is the mentor of Siva Group of companies.
IL&FS Financial Services had disbursed a total of ₹50 crore in two tranches to Siva Shelters in March last year.
The lender had exercised the put option and demanded the repayment of the loan. According to IL&FS Financial Services, Siva Shelters had a total outstanding of ₹58.65 crore (put option money) as on March 1, 2019.
Serves notice
The lender had since served notice on the guarantor as well on its decision to exercise the put option.
Siva Shelters, promoted by Hi-Tech Housing Projects Private Ltd., had been sanctioned the loan to develop affordable housing projects in Hyderabad district and Chennai.
The loan facility has a tenor of 60 months with a put/call option. The interest rate is 14% linked to IFIN benchmark rate. A land measuring 17.48 acre is provided as security for the loan. Besides, the lender had been given a corporate guarantee by Hitech Housing.
The lender has an exclusive charge over the cash flows of Siva Shelters.
Mr. Sivasankaran asserted that Siva Shelters had paid ₹5.22 crore towards interest on the loan till December 31, 2018.
“IL&FS Financial Services has requested the company to return the money. Siva Shelters is in the process of returning the money by selling the land. The land is worth ₹175 crore, and is already pledged with IL&FS Financial Services,” he added.
Mr. Sivasankaran asserted that “he is neither a shareholder nor a director of any company in India or in any other country. I am also not a guarantor of any loan in the country.”
He had given personal guarantees only for two companies — BMIC in Bahrain and the Tata Group.
“In the case of BMIC, it is already settled. In Tata Group case, there is a pending personal guarantee and the matter is under arbitration. This will be settled amicably after arbitration,” he added.
