Majority of it is the slum development project DHFL financed to its own related party, Thats my recollection of various reading about it from years. atleast $2-3 Billion DHFL lent to its own companies engaged in slum development which didn’t go well lead to to collapse of DHFL. Legally now PEL owns that land and have the rights to develop it.
DHFL has a builder loan book of about Rs 40,000 crore. Of this, 25-30% would be loans given to real estate builders engaged in the slum rehabilitation projects. There are about 10 such developers.
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Interesting to see how it evolves, as there will be need of political connections to get something out of these projects, PEL with RIL jack (family relations) i think there is something politically they can do about it.
Since these are written off to Rs 1 , there is no downside but there could be huge upside as and when in future they manage to get all the approvals from Gov to redevelop it.
There are about $1-2 billion dollars of loans (written down to Rs1) given to small builders who couldn’t complete the projects as DHFL funding to them collapsed overnight, I think those are decent viable projects which PEL should be able to re- structure, sell or even finish it themselves using PEL reality brand.
Even though markets see PEL wholesale lending in the mumbai as negative or bad business or risky business, i see it as their USP. They have decades of Experience in Mumbai real estate market as a builder, Mr. Khushru Jijina is one of the top mumbai reality guy who understand it better than many of us analysts. I think there was pain but markets worried abt it way more than required, PEL took very calculated risks 4-5 % of which went bad , they recovered some of it and they learnt, they are much better lender today then they were.
3-4 years from now PEL will be a quality lender / company in the eyes of very same skeptical market today.