SC stays HC order over sale of HDIL assets to repay PMC

Supreme Court stays Bombay High Court order directing sale of HDIL assets to repay dues of PMC bank

The top court also issued notice on RBI's plea to parties, including Sarosh Damania, who had approached the Bombay High Court for ensuring payment of dues to PMC Bank account holders.

The Supreme Court on Friday suspended the Bombay High Court order for sale of bankrupt Housing Development and Infrastructure Ltd (HDIL) to ensure repayment of dues of crisis-hit Punjab and Maharashtra Cooperative Bank.

Acting on appeal by the RBI, a bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant issued notice Sarosh Damania, who approached the Bombay High Court for ensuring payment of dues to PMC Bank account holders.

Earlier, the Bombay High Court had set up a three-member committee for valuating and sale of encumbered assets of HDIL to expeditiously recover dues payable by the firm to PMC Bank.

The HC passed the order on a PIL for direction for expeditious disposal of HDIL assets and properties attached by the Economic Offence Wing and the Enforcement Directorate and repaying PMC Bank depositors at the earliest. The fraud at PMC Bank came to light in September last year after the Reserve Bank of India discovered that it had allegedly created fictitious accounts to hide over Rs 4,355 crore of loans extended to HDIL.

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