Law tribunal to hear Rakesh Wadhawan’s plea for review of insolvency resolution

Rakesh Wadhawan, the former promoter and director of Housing Development and Infrastructure Limited (HDIL), has approached the National Company Law Tribunal (NCLT) seeking permission to propose a viable revival plan for HDIL. The NCLT will hear the plea on Tuesday.
Through his application, Wadhawan aims to either restructure HDIL or negotiate a one-time settlement, emphasising his commitment to maximising the company’s value.
He alleged that the resolution professional, Abhay Manudhane, had significantly undervalued HDIL, estimating its worth at over Rs 6,500 crore while the approved resolution plan proposed less than Rs 600 crore.
Wadhawan also claimed that HDIL’s assets have been systematically looted by business and joint venture partners. He further accused the resolution professionals and other authorised representatives of conspiracy and foul play.
Rakesh Wadhawan and his son Sarang were arrested in a multi-crore money laundering case linked with the PMC Bank, registered by the Enforcement Directorate (ED) as well as the Economic Offence Wing of Mumbai police in 2019.
The HDIL, its promoters and other co-accused and accomplices committed a fraud by causing a loss of Rs 6,117.93 crore against PMC Bank. Nearly 16 lakh account holders suffered as the RBI issued restrictions on withdrawal for several months.
The scam-hit PMC Bank, which had customers in six states, was being used as a personal bank by the accused promoters of HDIL, Rakesh and Sarang Wadhawan and this was done with the help of top officials of the bank.
Wadhawan was released on bail in April 2024.