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PMC Bank scam: HC sets up panel for sale of HDIL assets

The court said the committee shall first value and sell the encumbered properties of HDIL and if there is any shortfall towards repayment of dues, then the properties owned by Wadhawans shall be sold.

, ET Bureau|
Last Updated: Jan 16, 2020, 10.41 AM IST
The Wadhawans shall help the committee in valuation of HDIL's encumbered properties, the court said.
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MUMBAI: The Bombay High Court on Wednesday ordered the appointment of a three-member committee to oversee the sale of assets of Housing Development Infrastructure (HDIL) to pay the depositors of Punjab and Maharashtra Co-operative Bank (PMC Bank).

Justice S Radhakrishnan, a retired judge of the high court, would head the committee. He would select the other two members, ruled a division bench comprising Justices Ranjit More and Surendra Pandharinath Tavade. HDIL, its promoters Rakesh and Sarang Wadhawan, and a few former officials are accused of committing a fraud on PMC Bank. A public interest litigation filed in the high court, seeking the setting up of a committee to speed up the auction of HDIL’s assets to pay depositors, has claimed that the realty firm owed ?4,635 crore to the bank.

In its 18-page order, the court directed the Wadhawans as well as authorities to extend their support to the committee, including in granting necessary sanctions expeditiously for the purpose of monetising the assets.

The court said if the proceeds from the sale were insufficient to pay the dues, the committee would identify and dispose of the properties of other companies owned or promoted by the Wadhawans which were mortgaged with the PMC Bank, but with paripassu charge of other financial institutions.

It will hear the matter next on April 30.

The court directed the superintendent of the Arthur Road jail, where the Wadhawans are currently lodged, to shift them to their residence under the supervision of two jail guards to ensure their cooperation with the committee.

The Wadhawans and other accused had denied any wrongdoing.

In December, HDIL managing director Sarang Wadhawan had informed the court that he had no objection if the company’s encumbered properties were sold for the recovery of the money payable to the bank. His lawyer had told the court that such properties were worth more than ?11,000 crore as per the ready reckoner price, and would be sufficient to repay the dues.
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