Home buyers from HDIL’s stalled projects stage protest in tribunal

Over 100 home buyers from two stalled HDIL projects presented themselves in the sixth-floor courtroom of the National Company Law Tribunal in Cuffe Parade

Over 100 home buyers from two stalled HDIL projects presented themselves in the sixth-floor courtroom of the National Company Law Tribunal in Cuffe Parade on Tuesday. Uniformly dressed in yellow to attract the attention of the court, they staged a peaceful protest before the two-member NCLT bench against the inordinate delay in resolving the legal tangle.

Home buyers from HDIL’s stalled projects stage protest in tribunal

A cancer-afflicted home buyer, who had travelled from Pune, pleaded with the bench for an expeditious hearing so that his wife could get her rightful home. The bench, headed by Justice Lakshmi Gurung, was sympathetic and assured the group that she would hear the matter expeditiously on January 8 and 9.

The Sarang Wadhawan-promoted HDIL has been facing corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code after lender Bank of India moved NCLT for recovery of ₹522 crore from HDIL in June 2019. On August 19, 2019, NCLT admitted Bank of India’s insolvency petition, and appointed a resolution professional to spearhead the CIRP.

After many hurdles, including the Covid-19 pandemic, the homebuyers finally managed to get a project-wise resolution passed, which was voted in majority by the Committee of Creditors in September 2022. According to IBC norms, the resolution plan put up for approval by the Resolution Professional needs to be approved by the NCLT court within 30 days. However, more than a year later, the court is yet to do this.

Most homebuyers booked their homes in 2010-11 and the resolution plan voted by the COC had revived their hopes that construction would finally resume on the buildings. The case, initially scheduled for November 20, was postponed by lawyers four times for personal reasons. Finally listed for Tuesday, the case was again rescheduled to January 16, 2024. This was what angered the 850 home buyers, waiting for over 13 years for their rightful homes, and prompted their protest.

The project-wise resolution divided HDIL into 10 verticals. Adani Properties Pvt Ltd was voted for Project BKC and HDIL’s Shahad Maharal Lands, while the consortium of Kyati Realtors and Dosti Realty was awarded Majestic Towers in Nahur, Whispering Towers in Mulund and Premier Residences in Kurla. The COC also voted for Dev Land and Housing Pvt Ltd’s plan for HDIL Towers.

However, Unity Small Finance Bank, into which Punjab and Maharashtra Cooperative Bank was merged in January 2022, had raised objections to the resolution plan for Shahad Maharal Lands which went to the Adani group. HDIL promoters were arrested in connection with the PMC Bank scam earlier and Chief Promoter Rakesh Wadhawan is currently out on bail.

“We are hopeful that NCLT will complete the hearing on January 8-9 and allow the resolution plans for other verticals to proceed,” said Dr Haresh Manglani, who heads the Whispering Towers Flat Owners Welfare Association.

Majestic Towers in Nahur has three towers built till the 24th floor. One tower stands constructed till the 11th floor while 90 per cent of the Slum Rehabilitation building is complete. Whispering Towers, a G+47 floors project, has three towers in Phase I and four in Phase II. Phase 1 has been built till the 17th floor while Phase II has been at the plinth level since 2015.