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Money Jul 11, 2012

HCC down as RBI refuses to accord Lavasa infra status

By Firstbiz Staff

Shares of Hindustan Construction Company declined more than 2 percent after a news report that the Reserve Bank of India has refused to accord infrastructure status for subsidiary Lavasa Corporation's loans.

Lavasa Corporation is setting up a controversial township project near Pune.

This would mean that the company will not be able to recast its debt through the Corporate Debt Restructuring Cell of banks, the report in the Economic Times said.

Lavasa Corporation is setting up a controversial township project near Pune.

An entry into the CDR Cell would have helped the company's loans to be categorised as standard asset, the report said.

"Allegations which are devoid of any substance and made with a deliberate intention to derail the smooth progress of the project did have an impact on the finances of the company. We are confident of resolving these issues with our bankers and lenders," a Lavasa spokes person is quoted as saying in the report.

by Firstbiz Staff

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