HDFC Ltd has sold a piece of land in Mumbai to Macrotech Developer (Lodha) for Rs 70 crore under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, to recover a loan from a defaulting borrower.

Neptune Ventures and Developers had borrowed Rs 250 crore from HDFC as a construction finance loan for a project called ‘Flying Kite and Eleve’ in the eastern Mumbai suburb of Kanjurmarg. The land was mortgaged to the lender under the terms of the loan agreement.

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HDFC has sold 27,792 square metres of the total area of 35,645 square metres. The ‘Flying Kite’ project occupies the remaining land, in which over 400 units have been sold, according to the registration documents made available by data intelligence platform Propstack.

HDFC has sold the land to Macrotech on ‘without recourse’ basis, which means that the buyer accepts all the risks associated with the purchase and the seller has no liability.

The mortgage lender had sent demand notices to the real estate developer since 2021 for repayment of the loan dues, but the developer was unable to comply. A newspaper advertisement for sale of the property issued in January 2022, put the outstanding dues to HDFC at over Rs 303 crore.

Neptune Ventures has been undergoing bankruptcy proceedings from August last year, after having been dragged to court by a financial creditor for non-payment of dues of over Rs 17 lakh.

According to information from different online housing sites, project ‘Flying Kite’ was launched in 2012 and possession started in 2017.