State Bank of India filed a Section 7 application against Nova Infrastructure Developers Ltd., the special purpose vehicle developing a mixed-use township near Pune. The project, launched in 2015, comprised residential towers, retail frontage, and hospitality components spread across 62 acres with project finance of Rs. 890 crore sanctioned in multiple tranches.
Following prolonged construction delays, cost overruns, and sluggish pre-sales, the account slipped into stress. SBI claimed default of Rs. 312 crore principal outstanding along with accrued interest. The corporate debtor contended that force majeure events including the pandemic and municipal approval delays excused performance timelines under the facility agreements.
…Nova Infrastructure Developers Ltd. was promoted by a regional construction group with prior experience in affordable housing. SBI structured the facility with milestone-linked disbursements tied to construction progress certificates from independent engineers.
By 2021, two towers reached shell completion while internal finishing lagged due to contractor defaults and working capital shortages. Pre-sales collections were diverted partly to complete critical common areas pursuant to buyer association litigation settlements.
SBI issued notice under Section 13(2) SARFAESI in August 2023 and initiated symbolic possession of marketing office premises. Parallel IBC filing followed in January 2024 after failure of joint lender forum restructuring.
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State Bank of India filed a Section 7 application against Nova Infrastructure Developers Ltd., the special purpose vehicle developing a mixed-use township near Pune. The project, launched in 2015, comprised residential towers, retail frontage, and hospitality components spread across 62 acres with project finance of Rs. 890 crore sanctioned in multiple tranches.
Following prolonged construction delays, cost overruns, and sluggish pre-sales, the account slipped into stress. SBI claimed default of Rs. 312 crore principal outstanding along with accrued interest. The corporate debtor contended that force majeure events including the pandemic and municipal approval delays excused performance timelines under the facility agreements.
…Nova Infrastructure Developers Ltd. was promoted by a regional construction group with prior experience in affordable housing. SBI structured the facility with milestone-linked disbursements tied to construction progress certificates from independent engineers.
By 2021, two towers reached shell completion while internal finishing lagged due to contractor defaults and working capital shortages. Pre-sales collections were diverted partly to complete critical common areas pursuant to buyer association litigation settlements.
SBI issued notice under Section 13(2) SARFAESI in August 2023 and initiated symbolic possession of marketing office premises. Parallel IBC filing followed in January 2024 after failure of joint lender forum restructuring.
…NCLT Mumbai admits SBI…
First CoC meeting held;…
Sign in to view related legal provisions.