The lender had sent a notice to the Bombay Stock Exchange listed developer in February, demanding repayment of the loan given against its project Aarohan Residences in Gurgaon.

The economy is likely to be severely affected by the COVID-19 pandemic as well as from the ensuing lockdown, and there is a likelihood of defaults in the Micro, Small and Medium Enterprises (MSME) space.

A missed payout would have meant rating agencies downgrading the company to default category, and other lenders putting pressure on it to meet repayment obligation or face invocation of pledged shares.

Transstroy India, the Hyderabad-based infrastructure company has come under the Central Bureau of Investigation (CBI) scanner over allegations of fraud and involving lending by a consortium of banks.