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.
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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.
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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.