It is not easy for banks who have financed HDIL to recover their money

New delhi date. 08 October 2019, Tuesday

Public sector banks that have issued loans to HDIL will face a number of litigation to recover their money as some of the properties mortgaged by banks by HDIL and its promoters have been seized by the investigating agencies.

In addition, the one-time settlementmeltas that public sector banks have signed with HDIL in the last few years also have the potential for litigation. One-time Settlemelt's money may go to Litigation if it has been paid with a new loan from PMC Bank. The loans obtained from the PMC have been treated as fraudulent income by the investigating agency, the source said.

HDIL, which is facing an insolvency process in the Mumbai branch of the National Company Law Tribunal (NCLT), had received one-time settlementmeltas proposals from several banks.

According to a plan submitted to the National Company Law Appellate Tribunal (NCLAT), HDIL paid off part of the money left over to Bank of India in the last week of August through a pay order issued by PMC Bank.

But shortly thereafter, PMC Bank collapsed and the reason for this is that HDIL is said to have misappropriated loans of Rs 1 crore. The company's promoters were guaranteed against every loan made by public sector banks.

Investigation agencies have attached or are in the process of doing some properties of HDIL and its promoters. Some of these properties are mortgaged in banks. In such a case, if the banks have to recover the money from these properties, the court will have to knock on the door, ”the source said. Banks have to repay any amount they have received in the past in the form of One-Time Settlements, which they have received from PMC Bank.