ED gives go-ahead to HDIL asset auction

Tribune News Service

Mumbai, December 20

The Enforcement Directorate has given its go-ahead to auctioning of properties belonging to the troubled Housing and Development Infrastructure Ltd (HDIL) in order to recover the dues of the Punjab and Maharashtra Co-operative Bank.

ED’s lawyers on Thursday told the Bombay High Court the agency would not attach the properties belonging to HDIL and its promoters, the Wadhwans, so that these could be auctioned off to recover the bank’s dues.

Judges Ranjit More and S P Tavade observed the properties be sold at the earliest so that the deposit holders of the crisis-hit bank were able to access their money. The Wadhwans too have told the court their properties may be sold off and the bank repaid from the proceeds.

Earlier, Rakesh and Sarang Wadhwan, the father-son duo that controls HDIL, had filed an affidavit listing the group’s assets. These include both moveable and immoveable properties including more than 840 acres of land.

“We are still in the process of valuing the assets prior to auctioning them,” said a source from the Economic Offences Wing (EOW).

The valuation and the auction are expected to be held early next year. The Wadhwans have submitted to the court that their assets were worth more than Rs 11,000 crore, while their dues to the bank amount to Rs 4,355 crore.

This has, however, been contested by the investigating agencies according to whom, immoveable assets owned by HDIL include under-construction buildings where third-party rights may have been created.

The final value of the assets will be arrived at only by the valuers, according to EOW sources.

Recovery of PMC dues

* HDIL owners Rakesh and Sarang Wadhwan in an affidavit have claimed the firm has assets worth Rs 11,000 crore and owes the bank Rs 4,355 crore

* Probe agencies, however, claim immoveable assets owned by HDIL include under-construction buildings where third-party rights may have been created

* Sources say the process of valuing the assets prior to auctioning them is still underway and the auction is expected early next year