Reliance Home Finance Company failed to repay Rs 40 crore loans in February.

On February, the Reliance Home Finance Company, which is owned by Anil Ambani, defaulted to repay Rs 40.08 crore loan, it reported in a regulatory filing on March 10. The company has some Rs 700 crore funds in the form of liquid mutual fund investment, it said.

“However the delay in debt servicing is due to the company’s prohibition of disposing of, alienating, encumbering either directly or indirectly or otherwise any portion of the possession of any properties, subject to the Delhi High Court Order of 20 November 2019,” it said.

As per an earlier agreement, the company’s lenders have entered into an Inter-Creditor Transaction to arrive at the debt resolution strategy in compliance with the Reserve Bank of India’s circular of 7 June 2019 on the Prudential Framework for Resolution of Stressed Properties. This has caused the organization in delay in debt servicing, it said.

Of the loan default dated February 8, 2020, which was revealed to the exchanges on March 10, Rs 40 crore is towards principal and Rs 0.08 crore as an interest to its lender Punjab and Sind Bank.

Reliance Home Finance states that the loan with seven-year tenure has a total Rs 200 crore obligation with an annual interest rate of 9.15%.

Total financial debt for the firm is Rs 12,036, including interest accrued, both short-term and long-term borrowings.