HDIL Promoter Rakesh Wadhawan Seeks NCLT Approval for Revival Plan Amid Asset Mismanagement Allegations

Rakesh Wadhawan, the suspended promoter of Housing Development and Infrastructure Limited (HDIL), has moved the National Company Law Tribunal (NCLT) to allow him to propose “a viable revival plan” in the Corporate Insolvency Resolution Process (CIRP).In his application, Wadhawan has sought to be allowed to propose a viable revival plan in the CIRP or a one-time settlement in the insolvency process, underscoring that he is interested in the maximization of the resolution value.Wadhawan has alleged that he is “attempting to highlight the systematic loot of the assets of HDIL by business and joint venture partners of the corporate debtor and the conspiracy hatched by the Resolution professional (RP), authorised representatives and members of committee of creditors (CoC)”.

Wadhawan, in the application, has also claimed that the assets of the corporate debtor that is HDIL are enough to satisfy claims of creditors, but the CoC has overlooked the real value of assets and the intangible assets and cash flows from joint venture deals.

Creditors have filed a claim of Rs 8,138 crore, including interest and government dues. Wadhawan has submitted in the petition to the Mumbai bench of NCLT that the valuation of HDIL is more than Rs 6,500 crore, but the approved resolution plan proposes less than Rs 600 crore.

Earlier, Wadhawan had also filed a complaint to the Mumbai police.

Wadhawan in his petition to NCLT has claimed that the assets of HDIL have a very huge monitored value, but the members of CoC/RP chose to “overlook the real value of assets and stripped the prime assets at throwaway value to sister concerns and group companies of CoC members”.

Wadhawan has alleged that the whole corporate insolvency process, acceptance of claims, composition of CoC and voting on the resolution plan have all been compromised with asset value being undervalued and illegal claims have been accepted to muster the required 66 per cent of CoC votes.

The CIRP was initiated against HDIL in August 2019, and Abhay Manudhane was appointed as the Resolution professional.