The Bombay High Court on Thursday said that the assets belonging to Housing Development Infrastructure Limited (HDIL) and its promoters — Rakesh Wadhawan and his son Sarang — must be sold at the earliest to repay their ₹4,355 crore loan to Punjab and Maharashtra Cooperative (PMC) Bank as it is in the interest of the depositors.
A Division Bench of Justices Ranjit More and S.P. Tavade, while hearing a public interest litigation filed by Sarosh Damania seeking a direction from the court to restrain the Wadhawans from being granted bail, said that a committee headed by retired judge of the Supreme Court or High Court be set up to facilitate speedy recovery of the dues through public auction of properties directly or indirectly held by the accused persons.
Mr. Damania contended that the properties of companies owned/controlled/promoted or managed by the Wadhawans are already attached by the Enforcement Directorate and the Economic Offences Wing and if the normal procedure is followed it will take years to repay the bank depositors. Therefore, in the interest of justice the said properties must be auctioned.
The Bench said, “You (HDIL) have taken a loan and you have to repay it. The assets must be sold at the earliest. This will be in the interest of the bank and its depositors.”
On December 18, Sarang Wadhawan had filed an affidavit listing the group’s assets (both encumbered and unencumbered). He also said that he had no objection if the company’s encumbered properties are sold for recovery of money payable to the bank.
Senior counsel Vikram Chaudhri, appearing for HDIL, told the court that the encumbered properties shall be sold first and if there was any shortfall, the unencumbered assets could be touched. Mr. Chaudhri said, “The liability to the bank as per the FIR lodged by the police’s Economic Offences Wing is ₹ 4,355 crore. The encumbered assets are valued at ₹11,000 crore. It would be more than sufficient,” he said. He also argued that the Wadhawans, who are in judicial custody, should be granted bail so they can assist in identifying and selling the properties.
Counsel for ED Hiten Venegavkar informed the court that the agency has not attached any properties. He said the encumbered properties of HDIL, however, need to be valued as in some properties there are third party rights. The court has reserved the order in this matter.
