Prajay Engineers Syndicate Ltd is pinning hopes on the one-time settlement (OTS) of its piled up dues and resolution of some sticky issues for a turnaround process in the company.

The Hyderabad-based real estate company, which posted a loss in 2016-17 and has piled up dues on its ongoing projects, is now facing tough times due to delays in project execution and the recent stay on registration of one of its flagship projects.

Addressing the 23rd AGM of the company and later interacting with the media, D Vijay Sen Reddy, Chairman and Managing Director of Prajay, said, “It will take 3-4 years for the company to come out of the current issues and move ahead.”

One of the company's projects, Prajay Princeton Towers, has been under the bank's hold due to non-repayment of a Rs 220-crore loan including interest. The unsold inventory is in the hold of the banks and operations have been stalled. “We are hoping for a one-time settlement to resolve pending issues relating to dues,” he said.

Referring to the flagship project Prajay Megapolis coming up in the IT hub of Hyderabad, the CMD said while the first phase of 1,113 apartments is nearing completion, due to the recent land scam where the Government has initiated a probe, the registration department has stopped all registrations. This has meant delay in payment of Rs 90 crore in loans to the banks. Bankers are pressurising it for repayment of dues and there has been no fund flow.

The shareholders raised several questions asking how the management proposes to resolve the ongoing issues and bring back the company to profitability.