The bankruptcy court has admitted Privilege Power and Infrastructure, an affiliate of Housing Development and Infrastructure (HDIL), under the Corporate Insolvency Resolution Process (CIRP).
The Mumbai bench of the National Company Law Tribunal (NCLT) has appointed Anurag Kumar Sinha the insolvency resolution professional. This came on a petition filed by Unity Small Finance Bank, which had approached the court after the company allegedly failed to repay over Rs 138 crore in dues.
The loans were originally provided by Punjab and Maharashtra Cooperative (PMC) Bank. On August 23, 2019, the management of PMC Bank was taken over by an administrator appointed by RBI. Subsequently, the bank was merged with Unity Small Finance Bank.”The two essential qualifications, i.e., the existence of ‘debt’ and ‘default’, for admission of a petition under Section 7 of the I&B Code, have been met in this case,” the division bench led by judicial member Kuldip Kumar Kareer and technical member Anuradha Sanjay Bhatia said in its order of February 15. “Accordingly, the Petition is admitted.”
The fraud at PMC Bank came to light after the RBI found that the lender had allegedly created fictitious accounts to hide loans given to debt-laden HDIL.
