DRT issues summons to Wadhawans for recovery of ₹846.63-crore bank loan

The Debt Recovery Tribunal has summoned HDIL promoters for a ₹846.63 crore loan recovery, restraining them from dealing with certain assets and directing an October 2024 appearance.

MUMBAI: The Debt Recovery Tribunal, a quasi-judicial body that helps banks and financial institutions recover loans from customers, has issued a public summons to Housing Development and Infrastructure Ltd (HDIL) promoters Rakeshkumar Wadhawan and his son Sarang, in connection with the proceedings initiated by Bank of India for recovery of an outstanding loan amount of ₹846.63 crore from their group firm, Privilege Power and Infrastructure Pvt Ltd.

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Bank of Baroda filed a recovery proceeding against Privilege Power and Infrastructure and the Wadhawan father-son duo last year after the account of the HDIL group firm became a non-performing asset.

The DRT-1 allowed the issuance of a public notice against the firm and its promoters as summons issued to them could not be affected by ordinary mode. Apart from seeking a clarification as to why the recovery proceeding should not be made absolute, through the public notice the Tribunal has also directed the father-son duo to disclose the properties owned by them – other than those mortgaged against the outstanding loan amounts.

The public sector bank has filed a separate application for attachment of the secured assets and some other assets owned by the firm and the father-son duo and through the public notice the Tribunal has also restrained them from dealing in any manner or disposing of the properties mentioned in the bank’s application or creating third party rights in the assets, except in the ordinary course of the business. The restraint would remain in force till the time the Tribunal decides the bank’s application for attachment of the properties.

The Tribunal has also directed them to appear before the Registrar on October 28, 2024, and file their written statement, failing which the Tribunal would proceed against them in their absence.