BENGALURU: Loans worth more than $1billion, or about Rs 6,800 crore, given to various residential developers in Bengaluru over the last few years by non-banking finance companies (NBFC) are in distress and seeking bailouts as developers struggle to repay them due to sluggish sales and stringent regulations enacted recently.
Several of the city’s second rung and smaller builders are being dragged to the National Company Law Tribunal (NCLT) or forced to part with their assets after defaulting on loan repayments. While the heat is mostly on the smaller builders, a few top developers are also in the list as they struggle to refinance the loan books.
This comes even as select projects have reported good bookings in the last two months, though recovering sentiments have eluded vast swathes of Bengaluru's residential market, one of the most resilient in the country.
The list of bad loans, reviewed by this newspaper, shows that 18 developers alone amount to over Rs 5,500 crore, or $800 million, pegging the total distress amount higher than $1billion.
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