The dedicated bankruptcy court has allowed exclusion of around 106 days from the corporate insolvency resolution process (CIRP) of Housing Development and Infrastructure (HDIL).
On Monday, a counsel for the company’s resolution professional (RP) informed the National Company Law Tribunal (NCLT) that since the promoters had challenged the order of NCLT at the National Company Law Appellate Tribunal (NCLAT), that time can be excluded from CIRP.
“We are seeking exclusion of about 106 days, which will help us to complete the time-bound process smoothly,” Abhay Narayan Manudhane, the resolution professional, said through his counsel. “In September, NCLAT had stayed the formation of the committee of creditors of the company, but subsequently that stay was lifted in the month of December and that time we are seeking to be excluded from CIRP.”
Allowing this plea, the division bench of Mumbai NCLT, comprising Bhaskara Pantula Mohan and Shyam Babu Gautam, directed 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.
Meanwhile, homebuyers of one of the residential projects of HDIL, Majestic Tower, have also approached the Mumbai bench of NCLT with the request that they be allowed to appoint a contractor to complete the project on their own.
“The project is of 1,000 flats, out of which around 300 flats were sold off. We are part of those flat buyers who have paid partial amount and we are ready to pull in the remaining amount of around? 100 crore to complete the project,” said Rohit Gupta, advocate for the clutch of homebuyers. “There are banks who are ready to fund the project as well since it is viable at this stage and we intend to complete the project along with Suraksha ARC, to whom the property was assigned.”
Manudhane 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.
Meanwhile, the Enforcement Directorate has charged HDIL promoters Rakesh and Sarang Wadhawan with laundering more than Rs 2,500 crore of the Rs 6,700 crore that 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, when the investigation agencies found certain evidence against the promoters of the company, they were sent to the judicial custody by the special PMLA court.
Source : The Economic times, February 18, 2020