The National Company Law Tribunal
Tuesday allowed Housing Development and Infrastructure Ltd (HDIL) four weeks time to pay Rs 98 crore to Bank of India or face insolvency proceedings.
Mumbai-based HDIL owes about Rs 520 crore to Bank of India (BoI) and it had agreed to pay in tranches to the lender.
The tribunal Tuesday directed HDIL to clear Rs 98 crore dues in four weeks to BoI as per the agreed terms or be ready to face the consequences.
HDIL has so far paid Rs 95 crore to BoI, but later defaulted and there was no possibility of any payment.
Senior counsel Navroz Seervai, representing HDIL, said the realty company had sought refinance to repay the debt from a cooperative bank, which did not disburse funds due to general elections.
The funds, he said, will now be released in three weeks.
Currently, HDIL is facing insolvency petitions from other public sector lenders including Corporation Bank, Syndicate Bank, among others.
HDIL owes Rs 7.42 crore to Corporation Bank, Rs 15 crore to Union Bank of India, Rs 57 crore to Syndicate Bank and Rs 2.75 crore to Dena Bank. They have filed separate petitions under Section 7 of the IBC to recover dues.
HDIL also owes Rs 143 crore to Union Bank of India and about Rs 60 crore to Jammu and Kashmir Bank.
After hearing the arguments, the division bench comprising Bhaskara Pantula Mohan and V Nallasenapathy granted four weeks time to HDIL to repay Rs 98 crore to BoI and around Rs 10 crore to Syndicate Bank as per schedule.
The tribunal has adjourned the case till July 4. It
will hear cases filed by Corporation Bank, Union Bank of India and Dena Bank on June 26.
HDIL, as per its 2017-18 annual report, has a debt of around Rs 2,400 crore.
The company claims that it has repaid Rs 800 crore to banks till now. However, according to a document released by Jammu and Kashmir Bank, only Rs 324 crore has been repaid.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)