Allahabad Bank puts two HDIL properties up for sale to recover dues

Allahabad Bank has put up for sale two Maharashtra-based properties of Housing Development & Infrastructure (HDIL) to recover outstanding loans to the tune of Rs 175 crore. The two properties are situated at Mulund in Mumbai’s suburban region and in the town of Palghar.

The reserve price for the Mulund project has been set at Rs 184 crore and that for the Palghar project is Rs 200 crore.

HDIL, which owed its lenders Rs 2,270 crore at the end of March, was dragged to insolvency court by Andhra Bank in October 2017. The bank withdrew its plea against HDIL the following month.

“The company has proceeded for settlement of its balance outstanding dues and has made part payment of its balance dues. The application stands withdrawn from NCLT (National Company Law Tribunal) by Andhra Bank,” the property developer had told the stock exchanges in November 2017.

Earlier, in July 2017, NCLT had admitted Union Bank of India’s insolvency petition against HDIL’s subsidiary Guruashish Construction for defaulting on loans worth Rs. 254 crore. HDIL was reported to have been in talks with Union Bank to work out a one-time settlement and halt insolvency proceedings.

Earlier this month, NK Sahoo, executive director, Allahabad Bank, said the bank is expecting nearly Rs 3,000 crore recovery through NCLT resolutions this fiscal, while around Rs 2,000 crore is expected through other means of recovery. “We have already recovered around Rs 1,300 crore from the resolutions of Bhushan Steel and Electrosteel Steels insolvency cases,” Sahoo had said.