NCLT Allows Exclusion Of 106 Days From HDIL’s CIRP

The National Company Law Tribunal (NCLT) has allowed exclusion of around 106 days from the corporate insolvency resolution process (CIRP) of Housing Development and Infrastructure (HDIL).

Earlier, a lawyer for HDIL’s resolution professional (RP) had informed the NCLT that since HDIL’s promoters had challenged the NCLT’s order at the National Company Law Appellate Tribunal (NCLAT), that duration of time can be excluded from the CIRP.

Allowing this plea, the division bench of Mumbai NCLT the resolution professional to exclude the time from September 3, 2019, to December 19, 2019, and posted the case for further hearing on March. This comes as a relief to the company, given that there is a time limit for completion of CIRP.

HDIL’s resolution professional had also submitted status of the company’s ongoing projects as well as status of CIRP.

HDIL, which is also engaged in slum rehabilitation projects in Mumbai, has a total debt of Rs 1,989.77 crore. In a recent conference call with investors, it announced that it had reduced part of its debt and would focus on shedding loans further in the next three quarters.

It may be recalled that the Enforcement Directorate (ED) has charged HDIL promoters Rakesh Wadhawan and Sarang Wadhawan with laundering more than Rs 2,500 crore of the Rs 6,700 crore which the company had allegedly taken as loans from the PMC Bank between 2007 and 2013.

The Wadhawans were arrested on October 3 last year under the PMLA, which allows the accused to seek bail if no prosecution complaint is filed within 60 days of the arrest.

However, after two months, after the investigation agencies found certain evidence against HDIL’s promoters, they were sent to the judicial custody by the special PMLA court.