HDFC Realty to help banks dispose of defaulter assets

Here, it is note-worthy that HDFC Realty, a real estate advisory firm, is considering helping banks sell properties of defaulters and recover loans. The Securities and Exchange Board of India (SEBI) had appointed HDFC Realty and SBI Capital Markets to e-auction properties of payment defaulters – Sahara and PACL. Leveraging its experience in selling properties of Sahara and PACL for the market regulator, HDFC Realty Chief Executive Vikram Goel says: “Banks have certain assets which are under stress and are not able to recover them from borrowers. These loans can be taken by corporates or individuals where property is mortgaged. We are looking at such opportunities where we can provide the banks a platform to sell such properties in the market and recover the loans.” Many a time, banks tend to auction the properties mortgaged by putting out advertisements and interested parties approach them and recover the loan. “But now we, through our platform and our experience of so many years, are telling the banks that HDFC Realty will list these properties and sell them on their behalf in a more professional manner,” he said. While the banks will be able to recover the loan amount, the company will earn fees for the services provided, making it a win-win situation for all the three parties, including the borrower. HDFC Realty plans to work with at least seven banks in the next two years. “We are looking at loan defaults where the bank is already in discussion with the borrower and where the latter, either an individual or a company, has agreed to allow the bank to sell its property to recover the loan,” Goel said.  The sale proceeds would be credited to the bank’s escrow account.