HDIL under govt scanner for financial irregularities; lookout circular issued against MD, director
PMC's exposure to HDIL group is nearly 73% of its total loan book size of Rs 8,880 crore as of 19 September 2019, a source had said on Sunday.
The move follows a request by MCA which has been made operational by Bureau of Immigration
HDIL is also embroiled in the crisis at PMC Bank, which has extended substantial amount of loans to the company.
It has a land reserve of around 193 million sq ft as on 31 March 2019, with 90% of its land reserves in Mumbai Metropolitan Region
New Delhi: The government has issued a lookout circular against two directors of realty firm HDIL after preliminary findings allegedly revealed financial irregularities at the company, according to a senior official.
— News18 (@CNNnews18) October 1, 2019
A lookout circular is issued against a person directing the immigration authorities to ensure that he or she does not leave India through an airport or seaport.
The official told PTI that the circular has been issued against the company's managing director Sarang Wadhawan and whole-time director Rakesh Kumar Wadhawan.
The move follows a request by the Ministry of Corporate Affairs which has been made operational by the Bureau of Immigration that comes under the Ministry of Home Affairs, the official added.
Further, the official said the circular has been issued against the two directors based on a preliminary report received from field office of the corporate affairs ministry.
HDIL is also embroiled in the crisis at Punjab and Maharashtra Cooperative (PMC) Bank, which has extended substantial amount of loans to the company.
PMC's exposure to HDIL group is nearly 73 percent of its total loan book size of Rs 8,880 crore as of 19 September 2019, a source had said on Sunday.
In an alleged confession letter to the RBI, the bank's suspended managing director Joy Thomas had accepted giving loans to realty developer HDIL and its related entity to the tune of Rs 6,500 crore without informing all the board members.
Currently, HDIL is developing various projects at Kurla, Nahur, Mulund and Palghar and has a residential portfolio of 86.22 lakh sq ft under construction.
It has a land reserve of around 193 million sq ft as on 31 March 2019, with 90 percent of its land reserves in Mumbai Metropolitan Region, as per the 2018-19 annual report.
Incorporated in 1996, Mumbai-based HDIL mainly focused on real estate development in the Mumbai Metropolitan Region, which included clearing slum land and rehabilitating slum dwellers.
The main source of revenue of HDIL, for long, has been selling of development rights to other property developers, after developing the slum land.
The company reported revenue of Rs 601.20 crore in FY19 and a net profit of Rs 96.19 crore.
PMC Bank scam: EOW summons former director for interrogation, seeks details on lender's loan disbursement process
Arora was a director of the PMC Bank and was also on its loan committee, an official said.
PMC Bank scam: Nearly 78% depositors can withdraw entire deposits, says govt; efforts underway to repay customers money
Sitharaman also said in Lok Sabha that in case of medical emergencies, marriages and other crisis situations, a depositor of PMC Bank can withdraw up to Rs 1 lakh by invoking the 'hardship provisions' of RBI.
The EOW has arrested five persons in the Rs 4,355-crore PMC Bank scam, including HDIL's Wadhawans and the bank's former chairman Waryam Singh and former managing director Joy Thomas.