Bombay High Court sets up panel to liquidate HDIL assets

17 Jan 2020 CW Staff

Last month, the Enforcement Directorate (ED) filed a 7,000-page chargesheet against HDIL's promoters, in connection with their alleged involvement in the Rs 43.55-billion Punjab and Maharashtra Cooperative (PMC) Bank scam. HDIL promoters Rakesh Wadhawan and his son Sarang Wadhawan, have been in the ED's custody, since October 2019.

The RBI had earlier imposed financial restrictions on PMC Bank depositors, following the discovery that the bank, in cahoots with the HDIL promoters, concealed from the banking regulators' scrutiny, huge loan defaults by the latter. Over 73 per cent of the bank's advances went to HDIL Group, which led to a huge crisis when the Group defaulted on repayment.

The HDIL trouble

As per a PropTiger.com report, plunging sales and deepening liquidity crisis have already pushed the builder towards bankruptcy, with the National Company Law Tribunal (NCLT) admitting an insolvency plea of Bank of India, against it in August, over a loan default of Rs 5.22 billion. The National Company Law Appellate Tribunal (NCLAT), however, accepted the builder's plea, challenging the move. If the builder loses, it would join several other developers based in the NCR, currently facing insolvency proceedings, including Amrapali, Jaypee, Unitech and 3C.

Apart from Bank of India, several other financial institutions have moved several petitions against HDIL in the Mumbai Bench of the NCLT, over loan defaults, under Section 7 of the Insolvency and Bankruptcy Code (IBC). These include Syndicate Bank, Corporation Bank, Dena Bank, Union Bank and Indian Bank.

In 2018, the developer, which is listed on both BSE and NSE stock exchanges had settled similar petitions filed by J&K Bank and Andhra Bank, in connection with defaults running up to Rs 3.74 billion.

Once counted among the fastest moving real estate developers in the county, HDIL has completed more than 100 million sq ft of construction since its inception in 1996. Apart from residential and commercial real estate, the company is also active in slum redevelopment projects.

HDIL also has at least 10 residential projects, mostly in Mumbai that are in various stages of construction. These include Majestic Tower (Nahur West), Whispering Tower (Mulund West), Residency Park II (Virar), Premier Exotica (Kurla West), Harmony (Goregaon West), Metropolis Residence (Andheri West), Galaxy Apartments (Kurla East), Paradise City (Palghar), HDIL Hyderabad, etc.

The Bombay High Court (HC) on January 15 ordered setting up of a three-member panel to evaluate and sells assets of the embattled Housing Development and Infrastructure (HDIL). The fund thus accumulated would be used to pay off the debt the builder owes crisis-hit PMC Bank. Last month, the Enforcement Directorate (ED) filed a 7,000-page chargesheet against HDIL's promoters, in connection with their alleged involvement in the Rs 43.55-billion Punjab and Maharashtra Cooperative (PMC) Bank scam. HDIL promoters Rakesh Wadhawan and his son Sarang Wadhawan, have been in the ED's custody, since October 2019.The RBI had earlier imposed financial restrictions on PMC Bank depositors, following the discovery that the bank, in cahoots with the HDIL promoters, concealed from the banking regulators' scrutiny, huge loan defaults by the latter. Over 73 per cent of the bank's advances went to HDIL Group, which led to a huge crisis when the Group defaulted on repayment.The HDIL troubleAs per a PropTiger.com report, plunging sales and deepening liquidity crisis have already pushed the builder towards bankruptcy, with the National Company Law Tribunal (NCLT) admitting an insolvency plea of Bank of India, against it in August, over a loan default of Rs 5.22 billion. The National Company Law Appellate Tribunal (NCLAT), however, accepted the builder's plea, challenging the move. If the builder loses, it would join several other developers based in the NCR, currently facing insolvency proceedings, including Amrapali, Jaypee, Unitech and 3C.Apart from Bank of India, several other financial institutions have moved several petitions against HDIL in the Mumbai Bench of the NCLT, over loan defaults, under Section 7 of the Insolvency and Bankruptcy Code (IBC). These include Syndicate Bank, Corporation Bank, Dena Bank, Union Bank and Indian Bank.In 2018, the developer, which is listed on both BSE and NSE stock exchanges had settled similar petitions filed by J&K Bank and Andhra Bank, in connection with defaults running up to Rs 3.74 billion.Once counted among the fastest moving real estate developers in the county, HDIL has completed more than 100 million sq ft of construction since its inception in 1996. Apart from residential and commercial real estate, the company is also active in slum redevelopment projects.HDIL also has at least 10 residential projects, mostly in Mumbai that are in various stages of construction. These include Majestic Tower (Nahur West), Whispering Tower (Mulund West), Residency Park II (Virar), Premier Exotica (Kurla West), Harmony (Goregaon West), Metropolis Residence (Andheri West), Galaxy Apartments (Kurla East), Paradise City (Palghar), HDIL Hyderabad, etc.

Infrastructure Energy

14 Oct 2025

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Infrastructure Energy

14 Oct 2025

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Infrastructure Energy

14 Oct 2025

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..