Tata Capital Financial Services has filed a winding-up petition in the Bombay high court against one of the biggest names in the real estate industry, HircoPlc's subsidiary Hiranandani Palace Gardens, which has defaulted on a term loan of Rs 76 crore.

Tata Capital Financial Services has demanded liquidating the subsidiary of Hirco, which is currently developing large mixed-use townships in suburban areas outside tier-I and tier-II cities in India, including Chennai and Panvel near Mumbai.

According to the petition reviewed by ET, the developer defaulted on loan obligations from December 2012 and is now liable to pay 82.6 crore, including an annual interest of 18.5%. It adds that Hiranandani Palace Gardens had applied for a 100-crore term loan that was sanctioned in July 2011. Of this, Tata Capital had disbursed 76 crore.

Tata Capital Financial Services has filed the petition through law firm Manilal Kher Ambalal & Co. When contacted, Vikram Trivedi, managing partner of the firm, confirmed that the petition has been filed. He, however, declined to comment on the issue, saying the matter is sub-judice.

Tata Capital drags Hiranandani arm to court over Rs 76-cr loan default Niranjan Hiranandani, the former chairman of Hirco, in his response to ET's query, said he has not been connected with Hiranandani Palace Gardens since his resignation from Hirco.

Hiranandani added that he has in fact made an offer to buy out the project companies and the lenders. This offer is under consideration by the board of Hirco Group, he added. Hiranandani, however, declined to comment on his current holding in the company promoted by Hiranandani Group. "Hiranandani Palace Gardens has been in touch with Tata Capital Financial Services for amicably settling the part default of loan, and this will be settled soon," said a spokesperson of Hiranandani Palace Gardens.

The petition claims that Hiranandani Palace Gardens is under financial stress and is unable to meet creditor's liabilities.

It alleges further that the company has misrepresented facts while availing the term loan. In September 2011, the developer had authorised Jerxis Vandrevala and/or Firdose Vandrevala along with two more individuals to sign and execute necessary loan and security documents.

However, in response to the lender's notice sent in January, two out of four directors, Niranjan Hiranandani and Jerxis Vandrevala informed that they ceased to be directors of the company from April 2011, says the petition.

According to Tata Capital Financial Services, the documents furnished by the borrower before the loan disbursements were signed by Jerxis Vandrevala, who claims to have stopped being the director from April 2011 itself. The balance sheet as on March 2012, however, continues to reflect both Hiranandani and Vandrevala as directors of the borrower company.

Keywords:Tata Capital Financial Services, Bombay high court ,real estate industry, HircoPlc's subsidiary, Hiranandani Palace Gardens, Hirco, petition claims , company, security documents, loan disbursements,Business news,borrower company.