Housing Development & Infrastructure Ltd’s former promoter Rakesh Wadhawan has approached the National Company Law Tribunal, demanding that the now-defunct realty firm’s corporate insolvency resolution process (CIRP) be conducted all over again.
Wadhawan has also sought to submit a resolution plan to revive the company.
In his application, Wadhawan has claimed that the value of the company was huge, but its resolution professional (RP), committee of creditors (CoC) and valuer chose to overlook the assets, including intangible assets, and possible cash flow from joint venture deals.
The petition, a copy of which ET has seen, claimed that the defunct realty developer has a valuation of over ₹6,500 crore, but the resolution plans are for less than ₹600 crore.
“The mischief committed in throwing off the assets at such a low rate further aggravates the problems further of the suspended board who would in turned be liable to pay off the remaining debt/deficit amounts not recovered through the CIRP Process,” Wadhawan said in his application.
In fact, the outstanding principal of all the financial creditors could be settled by selling just the unutilised land parcel of HDIL, he claimed in the petition. HDIL is one of the largest holders of land and Slum Rehabilitation Authority rights in the Mumbai Metropolitan Region, he said.
ET’s email to HDIL’s resolution professional seeking comment remained unanswered at press time Thursday.
In 2021, the secured lenders of the company had decided to carve out the company in 10 verticals to invite separate resolution plans for each project. In September 2022, the RP received 14 resolution plans for nine verticals and two separate proposals for the company as a whole. However, only six resolution plans were feasible and the CoC approved those with more than 66% of votes.
