Ansal Phalak Infra ceases to be susbidiary of Ansal Properties

Realty firm Ansal Properties and Infrastructure on Saturday said Ansal Phalak Infrastructure has ceased to be its subsidiary after conversion of debentures into equity shares by foreign entity.

The decision was based on the arbitration award in relation to the dispute arisen between the shareholders and investors of Ansal Phalak.

"As per the intimation received from Ansal Phalak Infrastructure Pvt Ltd it has ceased to become subsidiary of the company with effect from 31st March, 2020 upon the conversion of its Compulsorily Convertible Debentures owned by foreign entity into the equity shares of Ansal Phalak in terms of the said Arbitral Award," Ansal said in a regulatory filing.

The company informed that an agreement has been executed for the purpose of the transfer of business undertaking of Versalia Projects of Ansal Phalak on a slump sale basis comprising two land parcels of nearly 90 acres in Gurugram to the company.

Ansal Properties would pay the consideration by transfer of unsold units at Versalia Projects and at other projects.

The company did not disclose the name of the foreign entity.

In 2011, Ansal Properties & Infrastructure (Ansal API) had announced that private equity firm Red Fort Capital has invested Rs 200 crore to jointly develop a housing project in Gurugram.

"Red Fort will invest a total of Rs 200 crore in the JV, in which it will hold 26 per cent stake and Ansal API will hold the remaining 74 per cent stake," the company had said in a release.