A dedicated bankruptcy court has admitted an insolvency plea against listed realty developer Housing Development & Infrastructure (HDIL) after Bank of India sought recovery of its dues under provisions of the time-bound resolution program.
The state-owned lender had approached the Mumbai bench of the National Company Law Tribunal (NCLT) against the realtor after it failed to repay dues of around Rs 522 crore.
On Tuesday, NCLT admitted the insolvency resolution plea against Mumbai-based HDIL in an oral order.
“The petition filed by Bank of India is admitted,” said the tribunal. The committee is made up of judicial member Bhaskara Pantula Mohan and technical V Nallasenapathy.
Besides Bank of India, the builder also faces resolution pleas by Corporation Bank, Syndicate Bank, Indian Bank, and Dena Bank.
Last year, HDIL had settled two similar bankruptcy petitions by Jammu & Kashmir Bank and Andhra Bank, paying the lenders Rs 334 crore and Rs 40 crore, respectively.
“We are waiting for the copy of the order and then we have decided to take appropriate legal action and remedies available to us,” said Subir Kumar, an advocate representing HDIL.
Nishit Dhruva, managing partner of law firm MDP & Partners that is advising the lender, confirmed the development but declined to discuss details.
ET’s mailed query to HDIL’s vice chairman and managing director Sarang Wadhawan remained unanswered.
“This is to inform that Housing Development and Infrastructure Limited has been admitted under the provisions of the IBC,” the company said in its exchange announcement. “The company is under the process to file an appeal to the National Company Law Appellate Tribunal (NCLAT) against the order passed by the National Company Law Tribunal.”
HDIL, engaged in slum rehabilitation projects in Mumbai, has total debt of Rs 1,989.77 crore. In its recently held investor conference call, HDIL announced that it has reduced a part of its debt and will focus on shedding loans further in the next three quarters.
Last quarter, HDIL had said it reduced debt by about a fifth as both consolidated and standalone entities, in line with its guidance.
HDIL reported a 67% on-year decline in net profit in the quarter ended June 30, at Rs 8.24 crore. Total income was Rs 96.50 crore, declining 44% from a year ago.
Source: Economic Times