Real Estate

Real Estate Transactions

Bombay HC restrains Orbit Ventures from creating third-party rights on properties

Economic Times  

The Bombay High Court has restrained realty developer Orbit Ventures from dealing with or creating any third-party interest in respect of its personal properties in a matter related to their default in payments to Axis Finance. In September 2017, Axis Finance lent INR 130 crore to Orbit Ventures Developers. As against the funds disbursed by Axis Finance, the securities, including 12 unsold flats in a project in Mumbai's Andheri suburb and receivables in respect of 54 identified flats, were created in favour of the lender. The company had also created a mortgage on a half-acre land parcel in Vile Parle, a suburb in North Mumbai. The developer defaulted on making payment and the account turned into a non-performing asset (NPA) in December 2019. Axis Finance then commenced an action under the SARFAESI Act, 2002, and the developer was then restrained from alienating any of their securities.