Bank of India recalls Rs 306 crore loan to HDIL arm

Bank of India recalls Rs 306 crore loan to HDIL arm
14/08/2017 , by , in ALLIED

In what seems to be more 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, has been served by Bank of India through its law firm MDP and Partners. The notice names Rakesh Wadhawan, executive chairman, 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 and make repayment to our client.“

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.

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