Sub-prime crisis to eclipse BPTP Ltd land deal in Noida

Sub-prime crisis has affected one of the India's largest real estate deals.

Delhi-based developer BPTP Ltd., which is depending on overseas institutions to fund the acquisition of 94 acres of prime land at Noida for Rs. 5,006 crore, has sought an extension to pay the first installment of the money.

On March 12, BPTP Ltd, promoted by entrepreneur Kabul Chawla, had bagged the rights to develop the land.

As per the deal the company had to pay the first installment of around Rs. 1,251.5 crore (25 per cent of the bid amount of Rs. 5,006 crore) to the Noida authorities within 30 days. That deadline expired earlier this month and the company has now sought a 60-day extension.

BPTP won the tender beating players like DLF and Omaxe. This tender has an "exception clause" that allows the company to seek an extension to pay the first tranche.

If the company fails to make the payment within the extended deadline, the deal will be cancelled and a fresh tender will be announced.

BPTP Ltd had a turnover of around Rs. 1,100 crore and a net profit of Rs. 220 crore in financial year 2007-08.

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