Bank of In­dia Re­calls ₹ 306-cr Loan to HDIL Arm

Sev­eral banks have been send­ing no­tices to dif­fer­ent group firms of HDIL over non-pay­ment of dues; Af­ter Cen­tral Bank & Union Bank, it is Bank of In­dia’s turn

The Economic Times - - Finance & Commodities - Saloni Shukla & Kailash Babar

Mum­bai: In­what­seem­stobe­more trou­ble brew­ing for real es­tate de­vel­oper HDIL, state-run lender Bank of In­dia has re­called a ₹ 306-crore loan given to HDIL sub­sidiary Priv­i­lege Power and In­fra­struc­ture. This comes af­ter Union Bank dragged group firm Gu­ru­ashish Con­struc­tion to the Na­tional Com­pany Law Tri­bunal (NCLT). Bank of­fi­cials speak­ing to ET on the con­di­tion of anonymity said that while the no­tice has been served, they were await­ing a re­pay­ment pro­posal from the de­vel­oper. “No of­fer for one-time set­tle­ment has been re­ceived,” a Bank of In­dia of­fi­cial said.

How­ever, in re­sponse to ET’s query, HDIL claimed that it has not re­ceived any such no­tice yet.

“We are not aware of any such no­tice. How­ever, in case there’s any is­sue, the same shall be re­solved with the bank and the ac­counts will be set­tled mu­tu­ally,” said Sarang Wad­hawan, MD, HDIL.

The re­call no­tice, seen by ET, has been served by Bank of In­dia through its law firm MDP and Part­ners.Theno­ti­ce­namesRakesh Wad­hawan, ex­ec­u­tive chair­man, Bank has called on the com­pany and guar­an­tors to pay out­stand­ing dues, fail­ing which the lender would ini­ti­ate le­gal pro­ceed­ings against the com­pany

HDIL, and Sarang Wad­hawan, MD, HDIL, as guar­an­tors to the loan. HDIL has also been named as the cor­po­rate guar­an­tor.

“De­spite re­peated re­quests and re­minders, you have failed and ne­glected to make pay­ments to our client,” the no­tice served to Priv­i­lege Power and in­fra­struc­ture said. “Even though you ad­mit­ted the debts, you have failed and ne­glected to reg­u­larise your ac­count and­mak­ere­pay­ment­toour­client.”

The bank has also called on the com­pany and guar­an­tors to pay out­stand­ing dues, fail­ing which the lender would ini­ti­ate le­gal pro­ceed­ings against the com­pany. The ac­count was clas­si­fied as a non-per-

form­ing as­set on March 31, 2016, by Bank of In­dia.

“The term loan wa­sis­suedin2013, and there’s an out­stand­ing of over ₹ 300 crore, but we haven’t re­ceived any word from the com­pany about when the re­pay­ment will hap­pen,” said Nishit Dhruva, man­ag­ing part­ner, MDP and Part­ners. The real es­tate de­vel­oper is fight­ing a sim­i­lar case with Cen­tral Bank of In­dia, where the lender had taken sym­bolic pos­ses­sion of its Kurla prop­erty af­ter it had failed to pay ₹ 144 crore. Ac­cord­ing to the com­pany, it will soon clear its dues it ow­est­oCen­tralBank of In­dia. “We have re­ceived a one-time set­tle­ment from the Cen­tral Bank of In­dia and have al­ready paid the first in­stall­ment for the same. We will ad­here to the sched­uleof re­pay­ment and set­tle our loans with the bank,” said Wad­hawan. HDIL had re­ported a net profit of nearly ₹ 61 crore at the end of March 2017, a rise of 28% over a year ago. Its total in­come, how­ever, de­clined 61% from a year-ago pe­riod to ₹ 132.09 crore. The de­vel­oper’s debt-eq­uity ra­tio as on March end stood at 0.22 times as against 0.27 times a year ear­lier. Just a week back, HDIL in­formed stock ex­changes that in­sol­vency pro­ceed­ing­shad­been­launcheda­gain­stone of its sub­sidiaries Gu­ru­ashish Con­struc­tion­fol­lowinga ₹ 250-crore de­fault.

Bank of In­dia had clas­si­fied ac­count as a non-per­form­ing as­set on March 31, 2016

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