HDIL on the verge of liquidation; homebuyers left high and dry
Housing Development and Infrastructure Ltd (HDIL), the Mumbai-based real estate company undergoing corporate insolvency resolution process (CIRP), is on the verge of being liquidated as no resolution is in sight despite the resolution process completing 270 days on 28 April 2021, leaving homebuyers in desperate situation.
According to sources, around 80% of the Committee of Creditors (CoC) are pushing for liquidation, and homebuyers are likely to suffer huge haircuts as they are unsecured creditors.
The Mumbai bench of NCLT has directed the resolution professional to keep the liquidation process on hold till further orders after Budhpur Buildcon Private Limited, one of the financial creditors, filed an interlocutory application with the NCLT.
Budhpur Buildcon has claimed dues of over Rs 14,000 crore but the same was rejected by the resolution professional.
The resolution professional has filed an application with NCLT for seeking exclusion for the period from 14th April, 2021 to 28th April, 2021 (period of commencement of lockdown due to COVID-19) and from 28th April, 2021 till date of disposal of Application filed by Budhpur Buildcon from the CIRP period of HDIL.
Meanwhile, the Representative of homebuyers has requested the CoC members to re-consider rerun of the process and partial/project wise resolution in view of the present status of CIRP.
Some of the CoC members have expressed the view that due to present status of CIRP there is no harm in attempting re-run of the process. Some of the CoC members sought the details of modalities — separate CoC for each of the projects, distribution of proceeds involved in project wise resolution and security in respect of each of the projects, etc.
HDIL, the company at the centre of PMC Bank scam, was dragged into insolvency proceedings after Bank of India filed an insolvency petition against the company in 2019. The company, which is a major real estate developer in Mumbai, owes around Rs 8,000 crore (including Rs 875 crore to homebuyers) to different creditors.
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