MUMBAI: In Mumbai’s property industry, HDIL was once considered a powerful, politically-connected construction company with major redevelopment projects in its bag. But after it went bust some years ago and its promoters landed in jail, around 3,000 homebuyers, who had booked apartments in various HDIL projects in Mumbai and its periphery, find themselves stranded.
A list of verified homebuyers shows they have collectively paid close to Rs 900 crore to the now-defunct HDIL but are still waiting for their apartments, many of which were booked about 15 years ago. Residential towers in Nahur, Mulund, Kurla, Vasai and Palghar are unfinished and virtually abandoned.
“It’s been over a decade since HDIL homebuyers booked their dream flats in 2010, expecting to start a new chapter in their lives. They saved, sacrificed, and waited with bated breath for their homes,” said a group of HDIL homebuyers, who met this correspondent. The revised possession date was 2016, but nine years later, they said hopes are dwindling. In Nahur, HDIL’s Majestic Towers was to be a 1,000-apartment complex with four wings of 36-storeys each. About 400 flats were booked in this project.
On LBS Marg in Mulund, HDIL’s Whispering Heights ground to a halt many years ago. Of 1,450 flats, 450 were sold when the project came to a halt. It consists of 7 towers of 40 floors each. Most bookings were done in 2010 and people had paid 60% of the amount. In Kurla, 104 buyers collectively paid Rs 104 crore to book flats in Galaxy Apartments. But perhaps the biggest project is in Palghar, where 2,047 flats were sold in Paradise City and buyers paid Rs 138 crore.
In 2019, HDIL’s promoters, the father-and-son duo of Rakesh and Sarang Wadhawan, were arrested for their alleged roles in the Rs 4,700 crore P&M Cooperative Bank loan fraud case. They were finally released on bail last year.
However, the insolvency of HDIL, caused by the alleged fraud, has led to a complex web of legal proceedings.
In 2019, Bank of India initiated the corporate insolvency resolution process (CIRP). “The resolution plan is awaiting approval from the National Company Law Tribunal (NCLT). Committee of creditors have already approved it with a majority of over 66%. But the ex-promoters are objecting to it,” said Kishore Raheja, one of the aggrieved buyers. HDIL’s former promoter Sarang Wadhawan did not respond to a query from TOI. Abhay Manudhane, the resolution professional for HDIL too did not respond to calls and text messages.
Last year, BMC filed a separate application before NCLT and claimed to be a secured creditor. It also claimed property tax of Rs 945 crore was recoverable from HDIL.
According to reports, HDIL has admitted liabilities of over Rs 8,138 crore. This includes dues towards secured financial creditors of about Rs 6,835 crore and about Rs 920 crore towards unsecured financial creditors. Last year, Rakesh Wadhawan approached NCLT and submitted a resolution plan to revive the company. He claimed though the company had large assets, the resolution professional, committee of creditors and valuer did not consider this.
“Quantification of CIRP proceeds and distribution mechanism of proceeds among secured financial creditors should not deny homebuyers the opportunity to get their homes,” said a group of HDIL home buyers.
