Moneycontrol
Aug 10, 2017 01:47 PM IST | Source: CNBC-TV18

Doing one-time settlement with banks for subsidiary debt: HDIL

HDIL has been reeling under pressure as the National Company Law Tribunal (NCLT) has initiated proceedings against its subsidiary. In an interview to CNBC-TV18 Sarang Wadhawan, VC & MD of the company shared his views on the same.

HDIL has been reeling under pressure as the National Company Law Tribunal (NCLT) has initiated proceedings against its subsidiary.

In an interview to CNBC-TV18 Sarang Wadhawan, VC & MD of the company shared his views on the same.

We have already informed the exchange the fact that one of our subsidiaries, Guruashish Constructions, has been admitted under the insolvency and bankruptcy code (IBC), he said.

One of the reasons why this happened is because the accounts of the company have been attached by the income tax (IT) department due to some earlier year demand and because of that whatever amount we were depositing in the accounts of the banks was being taken away by the IT department and we were unable to make the obligations of the bank, he added.

According to Wadhawan, HDIL is currently talking with the bank, they have made arrangements to make sure that once the one-time settlement is accepted by the bank, they will be able to make the payment to the bank and this entire insolvency is taken care of.

The total outstanding is about Rs 250 crore but we are still negotiating with the bank. We have already shown our forthright endeavour to close this issue out by giving some deposit to the bank, once the board takes a call on the amount then we should be able to close that out, he further mentioned.

Guruashish Constructions has only one undergoing project currently and only one loan on Union Bank which is on this company, so this is the only subsidiary where the NCLT has given an order, he said.

Wadhawan also said that, we have already registered 12 of our projects under Real Estate Regulatory Authority (RERA), because at the last fag-end of July, about 10,000 projects were registered with RERA. The moment we get the final approvals or the final registration number, the banks will start giving out the money which is due from the customers.

We have always been compliant to our consumers and to RERA and to the other authorities, he added.

For full interview, watch accompanying video...

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