Prajay sees turnaround in 4 years

Hyderabad: Prajay Engineers Syndicate Limited, a city-based real estate company which is facing financial and legal issues, on Wednesday claimed that it would sort out all issues and brings its projects back on track in three to four years.

“It will take at least 3-4 years for the company to come out of the issues it’s facing now and move ahead,” D Vijay Sen Reddy, company’s Chairman and Managing Director, told the media after its 23rd Annual General Meeting (AGM) here.

Established in 1994 and got listed on the bourses a year later, the real estate company so far completed 43 projects including 11 commercial projects. But two of its recent major projects landed in financial trouble.

Prajay Princeton Towers, a commercial project in L B Nagar, was ‘seized by the banks in concurrence with the court authorities due to non-repayment of loan which is Rs 220 crore (including interest)’, while Prajay Megapolis, a residential project comprising 1,113 apartments in Hafeezpet, caught in legal wrangles as the land on which it was being built was purchased from Dr P S Prasad of Goldstone Group, one of the accused in the recent land scam in Miyapur.

“In the wake of this scam, the Registration Department has stopped all registrations in the projects falling in the Survey No 78. As consequence, we are facing a huge problem with our existing owners who are refusing to pay any instalments until the registration is resumed.

This in turn is not helping us in the repayment of the loan of Rs 90 crore taken from the banks for the project execution,” explained Vijay Sen Reddy.