Home >News >India >HDIL promoters seek nod to sell assets to repay PMC Bank loans
HDIL’s Rakesh Wadhawan was arrested on 3 October. (Aniruddha Chowdhury/Mint)
HDIL’s Rakesh Wadhawan was arrested on 3 October. (Aniruddha Chowdhury/Mint)

HDIL promoters seek nod to sell assets to repay PMC Bank loans

  • These assets are mostly moveable assets that were recently attached by the ED, including a yacht, aircraft and 14 four-wheelers
  • Also, the ED on Wednesday sought custody of Rakesh Wadhawan and his son Sarang in connection with the 4,355 crore scam

MUMBAI : Promoters of bankrupt real estate firm HDIL Ltd have urged the Reserve Bank of India (RBI) and other agencies to sell their assets and repay the loans owed to Punjab and Maharashtra Co-operative Bank (PMC).

The father-son duo of HDIL promoters Rakesh and Sarang Wadhawan were arrested on 3 October by the economic offences wing (EOW) of Mumbai Police for their alleged involvement in the 4,355.43 crore financial scam at PMC Bank.

The Wadhawans, in a letter to the enforcement directorate (ED), the EOW, and the RBI on Wednesday, denied allegations of fraud and money laundering and asked the agencies and the central bank to “immediately take steps to sell the assets at a fair market value" and start repaying the loans.

“Such action for monetization of these depreciable assets is required to protect the value of the assets so as to fetch a fair market value for the assets and to make available immediate liquidity to start the process of repaying loans to PMC Bank," the letter said.

“We further give our unconditional consent for the appropriation of the money received from the sale of these assets to be adjusted and appropriated towards the principal loan amount procured by us and the respective companies...It is in the larger public interest that the assets are disposed off so as to mitigate the present situation," the letter said.

These assets are mostly the moveable assets recently attached by the ED. It includes a Ferrtti Yacht, Falcon 2000 Aircraft, a speed boat, and 14 four-wheelers, including Roll Royce Phantom, Bentley, and BMW cars that the Wadhwans owned.

So far the ED has seized assets worth 3,830 crore owned by the promoters.

The ED on Wednesday sought custody of both the Wadhwans. The EOW has alleged that the bank management, in cahoots with the Wadhawans, concealed from the banking regulators huge loan defaults by HDIL group firms, according to a report by news agency PTI.

Bank officials replaced 44 loan accounts of HDIL with 21,049 fictitious accounts to camouflage huge loan defaults by the real estate group, the report said.

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