The National Company Law Tribunal (NCLT) is set to hold a crucial hearing on the HDIL (Housing Development and Infrastructure Limited) case this Monday. The case revolves around a petition filed by Rakesh Wadhawan, the suspended director of HDIL, who was released on bail earlier in April. Wadhawan has raised objections to several decisions made by the resolution professional, Abhay Manudhane, in recent times.
Wadhawan’s petition alleged the resolution professional of undervaluing HDIL’s assets, approving fraudulent claims of homebuyers, and misleading the Committee of Creditors (CoC) by inflating his liabilities. Additionally, Wadhawan has sought permission from NCLT to submit a more effective resolution plan to revive the financially troubled company.
In the petition, Wadhawan claims that a systematic conspiracy is being hatched by the resolution professional and business partners to plunder HDIL's assets. He alleges that the company has enough resources to clear all its debts but accuses the CoC of overlooking the true valuation of HDIL's properties and its joint venture cash flows.
HDIL has an outstanding claim of ₹8,138 crores, including interest, as raised by creditors. Despite this, the company’s current market valuation stands at over ₹6,500 crores. However, during the insolvency process, the company’s valuation was reported to be below ₹600 crores, sparking further allegations from Wadhawan.
The petition also raises concerns over the fairness of the entire insolvency process, accusing corporate creditors of acquiring HDIL's assets at minimal prices through associated companies.
On the other hand, the resolution professional, in a statement to the police, has refuted all the allegations, calling them unfounded.
Monday’s hearing is expected to see the resolution professional defending his actions and addressing the concerns raised before the NCLT panel.