Property held by Subhash Chandra is taken into custody by LIC Housing Finance due to unpaid debts of Rs. 570 crore

Subhash Chandra, head of the Essel Group, owns a Churchgate property that LIC Housing Finance has "symbolic possession" of. Due to Chandra's failure to repay a debt in the amount of around Rs 570 crore, LIC Housing Finance has taken ownership of the property.

According to a newspaper advertisement published by LIC Housing Finance, the disputed property is a parcel in Backbay Reclamation Estate in Mumbai's Churchgate neighbourhood. Plot No. 11, CS No. 1689 of Fort Division & Bearing Municipal A Ward No 3664/14, 3664/A14, Street No. 13, Road No. A, Block I of Backbay Reclamation Estate, Churchgate, Mumbai–400020 is the address of the property.

It also stated that on December 13, 2021, LIC Housing Finance sent demand notices to borrowers Vasant Sagar Properties and Pan India Infraprojects as well as guarantor Subhash Chandra, requesting that they return an estimated Rs 570 crore in total within 60 days.

 The undersigned has taken symbolic possession of the assets listed below in exercise of powers granted to him under Section 13(4) of the aforementioned Act read with Rule 8 of the Securitization (Enforcement) Rules, 2002, on this 28th day of September of the year 2023. The borrowers/guarantors mentioned hereinabove have failed to repay the amount. Notice is hereby given to the borrowers/guarantors mentioned hereinabove in particular and to the public in general.

Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the lender has taken symbolic ownership of the property and the borrower and guarantors in particular and the public in general have been advised not to deal with the property.

The newspaper advertisement further stated that any transactions involving the property would be at LIC Housing Finance's expense and would cost around Rs. 570 crore, plus interest and other fees.

Q1 results for LIC Housing Finance

Due to the high demand for housing loans, LIC Housing Finance reported a 43% increase in standalone net profit for the first quarter of 2023, totaling Rs 1,324 crore. In the same time the previous year, the company reported a net profit of Rs. 925 crore. Net interest income (NII) for LIC Housing Finance increased 38% to Rs 2,252 crore in the three months ending June 30 of this year.