A sprawling 4,000 sq ft flat at Worli, belonging to Pujit Aggarwal, CEO and managing director of Orbit Corporation, is to be auctioned next month. Pujit says bank jumped the gun over a minor hitch
A sprawling 4,000 sq ft flat at Worli, belonging to Pujit Aggarwal, CEO and managing director of top real estate firm, Orbit Corporation, is to be auctioned next month because Aggarwal is apparently unable to repay a loan of Rs 3.19 crore.
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The 4,000 sq ft flat belonging to Pujit Aggarwal in this Worli building will be auctioned next month. Pic/Datta Kumbhar
Aggarwal agreed that a notice against his name has been issued by the bank, but claims the bank jumped the gun. “There was a delay on my part in paying back the loan, but the bank immediately took action. I am going to make the payment and things will be settled soon,” Aggarwal said.
Pujit Aggarwal
It will be an e-auction and will be held on September 7. Bidders will be allowed to increase the bid by Rs 1 lakh. The earnest money the bidder will have to deposit is Rs 1.87 crore.
A former employee of Aggarwal said the Worli flat is actually Orbit’s office premises. “Aggarwal had money at one point, but because of building permission norms changing, his project at Napeansea Road got stuck. Also, he had invested a lot in other projects, which didn’t materialise. Even the Kilachand House deal hasn’t been completed,” the ex-employee said.
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R Thakur, authorised officer from SBI, conducting the auction, confirmed that the flat belongs to Aggarwal. “The reserve price for the flat is Rs 18.66 crore and the area is 3,900 sq ft built-up. The inspection can be done by prospective buyers on August 27, between 11.30 am and 4 pm,” Thakur said.
The downslide
Orbit Corporation, till a few years ago, was doing very well in the real estate sector. The company hit its peak in 2011, when it acquired Kilachand House, the last standing palace in the city, for R550 crore. When asked about it, Aggarwal said, “Currently there’s a status quo on Kilachand House. I cannot discuss the amount involved as it wouldn’t be in the interest of my company.”
In the last few days things haven’t been going too well for the company. In 2013, there was a notice by LIC, where Orbit had defaulted on a loan of Rs 96 crore. However, this time, the SBI has decided to auction Orbit’s property.
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