The Bombay High Court set up a three-member committee on Wednesday for valuation and sale of encumbered assets of Housing Development and Infrastructure Ltd (HDIL) to expeditiously recover dues payable by the firm to crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank.
A division bench of Justices R V More and S P Tavade said the committee would be headed by retired high court judge S Radhakrishnan.
The court said the retired judge shall select two other members of the committee, and sought a progress report on the next date of hearing on April 30.
The court also directed the superintendent of Arthur Road jail, where HDIL promoters Rakesh Wadhawan and Sarang Wadhawan are presently lodged, to shift the father-son duo to their residence in suburban Bandra under the supervision of two jail guards to ensure their cooperation to the committee.
The Wadhawans shall help the committee in the valuation of HDIL's encumbered properties, the court said.
"We are conscious of the plight of
The court said the committee shall first value and sell the encumbered properties of HDIL and if there is any shortfall towards repayment of dues, then the properties owned by Wadhawans shall be sold.
If even after that there is a shortfall, then
The bench was hearing
HDIL counsel Vikram Chaudhri then told the court that the encumbered
"The liability to the bank as per the FIR lodged by the EOW is Rs 4,355 crore. The encumbered assets are valued at Rs 11,000 crore. It would be more than sufficient," Chaudhri had said.
The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to almost-bankrupt HDIL.
According to
Mumbai Police's Economic
The Wadhawans are presently in judicial custody.