Victor’s Group – Real Estate Advisory Newsletter Issue: July 2025 | Special Edition: NPA Management for Builders
By Krima Shah
On July 15, 2025
45 Comments
Navigating Financial Distress in Real Estate:
Why Every Builder in India Needs an NPA Expert
Dear Readers,
India’s real estate sector is at a crossroads. With increasing
financial pressure, stalled projects, regulatory tightening, and delayed sales,
many builders are struggling to manage their loan obligations. What begins as a
temporary cash flow issue often turns into a loan default, and before long, the
account is classified as a Non-Performing Asset (NPA).
This special edition highlights why every builder and real
estate developer in India must consider consulting an NPA expert—not as a last
resort, but as a proactive step toward financial recovery and long-term stability.
The Rising Need for NPA Expertise
NPA experts bring with them a deep understanding of banking
procedures, legal frameworks, and stress resolution strategies. Their role
becomes crucial in helping builders prevent, manage, and recover from financial
distress. With NPAs on the rise in the construction sector, their timely
involvement can save companies from reputational damage and legal complications.
Key Benefits of Hiring an NPA Expert
Preventing NPAs Before They Happen:
One of the greatest advantages is early intervention. NPA experts
are trained to identify warning signs like poor cash flow, mounting liabilities,
or delays in EMI payments. With the right action plan, they can help businesses
avoid default altogether.
Better Negotiation Power with Banks:
Banks are more receptive when approached by professionals who
understand their language. An NPA consultant can present well-structured proposals,
seek revised repayment terms, and negotiate interest waivers or loan restructuring
on behalf of the developer.
Customized Debt Restructuring and Revival Plans:
Experts draft plans that comply with RBI guidelines and work
closely with banks and NBFCs to restructure loan tenures, reduce interest burdens,
or propose One-Time Settlements (OTS). These plans focus on long-term viability,
not just temporary relief.
Legal Risk Management and Protection:
Most real estate promoters are not prepared to face legal
proceedings under SARFAESI, DRT, or IBC. NPA professionals’ step in to handle
notices, court representation, and strategic legal communication—protecting the
promoter’s interests and minimizing exposure.
Challenges Faced by Builders Today
From delayed possession to fund crunches and legal disputes,
builders are operating in a highly stressed environment. Projects are stuck due
to liquidity issues, and developers face buyer pressure under RERA along with
recovery action from lenders. This is a dangerous mix that demands strategic guidance.
The Real Advantage: Experience and Network
What truly sets NPA professionals apart is their network and
insider understanding. They have connections with Asset Reconstruction Companies
(ARCs), special situation investors, co-developers, legal experts, and senior
banking officials. These relationships can significantly reduce turnaround time
in resolving NPAs and reviving projects.
Final Thought
In real estate, time lost is opportunity lost. Waiting for a
loan account to become a declared NPA only reduces the chances of recovery.
Acting early and bringing an expert on board can safeguard your company’s
reputation, protect assets, and open doors for future funding and investor confidence.
If you're a builder, realtor, or construction company feeling
the weight of financial stress, now is the time to consult with an NPA expert.
Take the first step toward resolution—before it's too late.
Need Help?
Victor’s Group specializes in NPA resolution, debt restructuring,
legal defense, and project turnaround strategies tailored for the real estate industry.
Connect with us for a confidential consultation today.
