Housing Development & Infrastructure Ltd’s former promoter Rakesh Wadhawan has approached the National Company Law Tribunal, demanding reconduct of the corporate insolvency resolution process (CIRP) of the now-defunct realty firm.
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 Rs 6,500 crore, but the resolution plans are for less than Rs 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 turn 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.
Now Wadhawan is seeking the tribunal’s intervention to reject all the six resolution plans, and also reconstitute the CoC with each project having a committee. Additionally, he is seeking to stay CoC voting on all the remaining verticals. He has also prayed to conduct an investigation into the affairs of the CIRP of the HDIL.
The company has admitted liability of more than Rs 8,138 crore. These include the claims of Rs 6,835 crore by secured financial creditors that hold about 83.99% voting share in the CoC. The company also owes about Rs 920 crore to around 3,183 homebuyers in its projects and they constitute about 11.30 voting in the CoC.
