HDIL reaches settlement with Bank of India over dues worth Rs 5.11 bn

Bank of India accepted HDIL's structured payment plan to pay Rs 5.1 billion in one year's time

Housing Development and Infrastructure Ltd (HDIL) has worked out an out-of-court settlement with its main lender, Bank of India, over outstanding dues worth Rs 5.1 billion. 

Bank of India accepted HDIL's structured payment plan to repay the total debt amount in one year's time. HDIL has thus managed to avoid corporate insolvency proceedings against it. 

As of FY2018, HDIL had a total debt of Rs 22.7 billion.

Back in July, Andhra Bank, one of the company's lenders, withdrew the insolvency case it had filed against HDIL as the latter agreed to pay Rs 400 million in a one-time-settlement agreement. 

Another company promoted by Sarang Wadhawan and R K Wadhawan -- Guruashish Construction, a subsidiary of HDIL -- is also facing insolvency proceedings at the NCLT. The Bombay High Court is presently adjudicating over a dispute between Guruashish and the Maharashtra Housing Area Development Authority (MHADA)  over the private sale of flats and land in Goregaon, a northern suburb of Mumbai. 

MHADA said the dispute had arisen as the land-residential development contract was given to Guruashish on the condition that specific flats could not be sold privately, without the regulators' consent. 

HDIL also owes Rs 70 million to Jammu & Kashmir Bank and the NCLT in Mumbai will hear the bank's petition on November 15.