State-owned developer NBCC (India) Limited has been approached by the banks and financial institutions to take over some of the land assets that have been put up as a security with them by the promoters of defaulting firms.
State-owned developer NBCC (India) Limited has been approached by banks and financial institutions to develop land assets that promoters of defaulting firms have pledged with them, reports The Economic Times.
The move came after the government asked banks to consider all available options for speedy resolution of stressed assets before taking a sizeable haircut.
The banks are seeking maximum value from the stressed assets through monetisation of real estate pledged with them.
NBCC's role would be limited to developing those assets which are stuck, for a fee. Banks may later sell these assets or keep it for their commercial use.
Developers such as Amrapali, DS Kulkarni Developers, Era, Earth, Gardenia and Jaypee Infratech were some of the real estate firms under severe stress with some even facing insolvency proceedings.The Centre is looking to amend the Bankruptcy Code which prevents the current promoters of stressed companies to repurchase their company at a discounted price in the resolution process.