Debt-ridden Prajay Engineers hopes of turnaround in 3-4 years

Debt-ridden Prajay Engineers Syndicate today said it would take three to four years for the company to come out of the present problems and make a turnaround.
According to D Vijay Sen Reddy, CMD of Prajay Engineers they are in advanced talks with NBFCs or through FDI for repayment of loans to the tune of Rs 320 crore.
"We are in advanced stage of negotiations for settling the loans through NBFCs or FDI," Reddy told reporters.
The Hyderabad based real estate company today held its 23rd Annual General Meeting here.
He said one of the flagship projects of the company, the 'Prajay Megapolis' consisting 1,113 apartments at Hafeezpet here has come into land issue due to the recent "Miyapur land scam", as registrations have been stopped.

"We are giving possession to the customers but not able to get them registered. Now bankers have freezed accounts and now it has got stuck in land issue and legal problems," he said.

"Due to the scam, the registration department has stopped all registrations in the projects and following non registrations in our project 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 crores taken from the banks for the project execution," Reddy explained.

He said they are facing immense pressure from bankers and the owners at this stage but as long as it is not cleared by the registration department "there is nothing we can do".
Similarly, the companys commercial property 'Prajay Princeton Towers' in LB Nagar here has been seized by the banks in concurrence with the court, Reddy said.
"We have taken loan of Rs 112 crore and present outstanding (non repayment of the loan including interest) is Rs 220 crore. Recently, the banks moved court and locked the complex. They have gone for auction also but could not sell due to market conditions. We are negotiating with them for one-time settlement (OTS)," Reddy said.

In addition to these issues, Reddy said he is currently facing some personal problems from his late brother and former chairman's family who are currently planning to exit from the company at this stage.
Reddy said Prajay has got land bank of almost 300 acres in city limits. During 2016-17, Prajay reported a consolidated turnover of Rs 73.17 crore and its net loss during 2016-17 was Rs 24.2 crore.
"Once the issues get resolved, Prajay can do wonders in PMAY projects," Reddy said and expressed his belief that it will take at least 3-4 years to move ahead.