The petition filed by law firm MDP & Partners on behalf of Andhra Bank says that the bank is yet to receive Rs 55 crore out of Rs 100 crore it had invested total in HDIL’s NCDs in 2009.
Nishit Dhruva, managing partner at MDP, said the petition will come up for hearing in the first week of November. “We have served notice to the company and the petition has been accepted by NCLT earlier this month,“ Dhruva said.
In addition to Andhra Bank, In addition to Andhra Bank, United Bank of India, Allahabad Bank, Yes Bank, Oriental Bank of Commerce, Central Bank of India, Bank of India, J & K Bank, Union Bank of India, UCO Bank, and Punjab & Sind Bank have also invested an aggregate amount of Rs 980 crore of the NCDs, of which the total amount due is about Rs 226 crore, Dhruva said.
This is the second petition filed against HDIL within three months. In August, HDIL had informed the stock exchanges that the NCLT had admitted Union Bank of India’s insolvency plea against Guruashish Constructions, a wholly-owned subsidiary of the company.
However, HDIL later clarified that it is in talks with Union Bank of India for a one-time settlement to stop the insolvency proceedings and is looking to sell two assets to pay out its debt.
HDIL MD Sarang Wadhawan said the company is looking for a settlement even in the latest case. “We have already approached Andhra Bank for one-time settlement and as the same gets approved, we will make the payment accordingly. We are settling all our outstanding dues with all the banks and entire debt repayment will be completed over the next couple of years,“ Wadhawan said.
The company had a gross debt of Rs 2,585 crore in the quarter ended June 2017, down 13 per cent from the Rs 2,967 crore it reported a year ago. It’s consolidated net profit has come down 80 per cent to Rs 8 crore from Rs 41crore a year ago.