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Scam-Hit HDIL Appoints Knight Frank to Value 40 Land Assets

While the principal loan on these 40 properties is around Rs 2,200 crore, PMC Bank has been accused of fraudulently extending Rs 4,500 crore to HDIL on the back of security of these properties.


Updated:October 17, 2019, 11:21 PM IST
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Scam-Hit HDIL Appoints Knight Frank to Value 40 Land Assets
News18 Illustration by Mir Suhail

Mumbai: Scam-hit and bankrupt realty player HDIL, whose promoters are behind the bars for their alleged role in the PMC Bank scam, has appointed property consultant Knight Frank to do valuation of its 40 properties secured with the scam-tainted cooperative bank, which is estimated to be around Rs 8,000 crore.

While the principal loan on these 40 properties is around Rs 2,200 crore, PMC Bank has been accused of fraudulently extending Rs 4,500 crore to HDIL on the back of security of these properties. "Knight Frank will have to submit its valuation report to HDIL in 7-10 days," HDIL said in a statement on Thursday.

The statement further said HDIL chairman and managing director Sarang Wadhawan had met PMC officials, a couple of days before he was arrested by the EOW informing that all the loans taken by it against these 40 properties located across Vasai, Thane, Navi Mumbai and Kerala have been securitised with PMC Bank since 2010.

"Sarang Wadhawan had spoken to PMC management about the resolution plan to monetise these assets and clear the loans and hence the money of depositors are safe," the company claimed in the statement.

According to the statement, valuation of only 18 of the 40 properties has been done that too between 2010 and 2018 and the mortgage amount was only around Rs 1,300 crore, while the property valuation of these 18 properties was over Rs 2,200 crore, while other 22 properties are yet to be valued.

"The valuation of these properties mentioned with the bank is in 2010, 2012 and 2018. The current market valuation is not done. Hence the company has hired Knight Frank to do a fair valuation at the current market rate," it said.

HDIL sources told PTI that "the current value of the 18 valued properties will cross over 3,500 crore, while other 22 properties would be another Rs 4,000 crore."

"Sarang Wadhwan had informed the PMC administrator too in his meeting about this assets that can be monetised and payments to be made. They already were working on a resolution plan for the same. The total valuation would go to Rs 7,000-8,000 crore or more without FSI," it said.

HDIL sources also claimed, "there is no fraud from the part of HDIL. All these loans taken were secured and intact and the security cover is much more than the loan amount. The principal amount due is around Rs 2,200 crore, while rest in interest. Even the legal team has submitted the same."

On October 16, Rakesh and Sarang Wadhawans wrote to investigating agencies as well as RBI requesting it to sell off their assets, including a yacht, a Rolls Royce and an aircraft, to pay off the PMC dues.

The Wadhawans, who were remanded in judicial custody by a court here on Wednesday, in a letter to the Enforcement Directorate, the finance ministry and the RBI, requested that they be allowed to sell off these 18 assets which have been attached by the ED since their arrest.

According to the EOW, PMC management, in cahoots with the Wadhawans, concealed from RBI HDIL's loan defaults. PMC has an exposure of over Rs 6,500 crore to HDIL, which is over 73 percent of its total advance of Rs 8,880 crore and the loan has been NPA for the past many years but hidden from the books and RBI inspectors.

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