Kapil Wadhwan, MD, Dewan Housing Finance Corporation clarifies on CNBC-TV18 that his company severed all links, including cross-ownerships, directorships, intercorporate loans and joint holdings, with HDIL since 2009. Wadhwan adds that he expects the real estate business in Mumbai to revive after the loosening of the clamp on the grant of approvals.
Below is the edited transcript of the interview on CNBC-TV18
Q: Is there anything that might lend further clarity to your statement that emphasised that there is absolutely no connection with HDIL and you may not have even lent anything to the company?
A: I think we - as a family - about three-and-a-half to four years ago decided to pare down our cross-ownership and directorships. This was done in the month of July 2009. Post that we have also effected a separation agreement between the two families. So yes, at the cost of being repetitive, I would say that we have no connection whatsoever with HDIL or any ownership whatsoever nor do we have any lending activity related to HDIL.
Q: You perhaps may not have lent to HDIL's residential commitments, but have you lent any intercorporate loans to the company or and the parent company? Do you have any joint holdings?
A: Absolutely not. We have pared down that exposure completely. There was no direct or indirect exposure in any case.
Q: Is there any slowdown in the business for Mumbai real estate participants in general after the dramatic price announcements from Lodha? Across the board, stock prices of Mumbai-based real estate companies have been coming off. Is that causing any pressure? Why has your stock fallen 15 percent in 10 days?
A: At the end of the day, we operate in the lower and the middle income segment in terms of lending. With more than 250 offices across the country, Mumbai surely contributes to the business, but it is not the major contributor. Having said that, we have already seen how the Mumbai real estate market suffered on account of a complete halt of approval for projects. Now that the approvals have started trickling in, hopefully we will see a revival of that market again.