High Court (India)

January 15, 2020

HC Sets Up Panel To Sell Off HDIL Assets To Pay PMC Bank

[ By Bobby Anthony ]


The Bombay High Court has set up a three-member committee to value and sell off Housing Development and Infrastructure Ltd’s (HDIL) assets to recover dues payable to the Punjab & Maharashtra Co-operative (PMC) Bank.

The court also directed the superintendent of Arthur Road jail, where HDIL promoters Rakesh Wadhawan and Sarang Wadhawan are presently lodged, to shift the father-son duo to their suburban Bandra residence to enable them to co-operate with the committee.

The committee will first value and sell off the properties of HDIL and if there is any shortfall, then the properties owned by Wadhawans too will be sold off. It there is a shortfall even after that, then HDIL’s unencumbered assets too will be sold off by the committee, the court said.

The court ruling came after it heard a public interest litigation (PIL) filed by advocate Sarosh Damania, seeking directions for a quick sale of HDIL Group’s assets and properties attached by the Economic Offences Wing (EOW) and the Enforcement Directorate (ED), to repay PMC Bank depositors at the earliest.

It may be recalled that in December 2019, HDIL's Managing Director Sarang Wadhawan had filed an affidavit listing the group's assets (both encumbered and unencumbered), and told the court that he had no objection if the company's encumbered properties are sold to recover the money payable to PMC Bank.

HDIL’s counsel Vikram Chaudhri had also told the court that the company’s encumbered properties may be sold first and if there was any shortfall, unencumbered assets could be sold off as well.

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