'No Objection if HDIL Properties Are Sold off to Recover Dues of PMC Bank': Sarang Wadhawan Tells HC

Mumbai: HDIL managing director Sarang Wadhawan told the Bombay High Court on Wednesday that he had no objection if the realty group's assets were sold for recovery of dues of Punjab and Maharashtra Cooperative (PMC) bank.

Sarang and his father, HDIL promoter Rakesh Wadhawan are currently in judicial custody after the duo were arrested in connection with an alleged scam at PMC Bank.

Sarang Wadhawan filed an affidavit on Wednesday in response to a public interest litigation filed by lawyer Sarosh Damania.

The PIL seeks quick disposal of HDIL group's assets which have been attached by Mumbai Police's Economic Offences Wing and the Enforcement Directorate (ED), and speedy return of the depositors' money.

After a liquidity crisis at the bank came to light in September, the Reserve Bank of India imposed restrictions on withdrawal of funds, leaving depositors high and dry.

A division bench of Justices R V More and S P Tavade earlier this month had directed the Wadhawans to file their reply, and also list all the properties owned by the group.

Sarang Wadhawan's affidavit listed the properties. "I have no objection if all encumbered properties are forthwith sold for recovery of monies payable to the bank," he stated in the affidavit.

The bench posted the matter for further hearing on December 19. According to the investigators, fictitious accounts were created to hide over Rs 4,355 crore of loans extended to almost-bankrupt HDIL group by the bank.

Damania, in his PIL, said that ordinary court proceedings will take years before depositors get their money back, so the HC should direct speedy disposal of the attached assets.