SC stays Bombay HC order directing sale of HDIL assets to recover PMC dues

In a major relief to the real estate company Housing Development and Infrastructure Ltd (HDIL), the Supreme Court on Friday stayed a Bombay High Court order which directed sale of the company's assets to repay the dues of Punjab and Maharashtra Co-operative (PMC) bank.

A Bench of Chief Justice SA Bobde, Justice BR Gavai and Justice Surya Kant also issued a notice to other parties in the matter including Sarosh Damania, who had approached the Bombay High Court to ensure the payment of the dues of the account holders of PMC Bank.

The top court was hearing a petition filed by the Reserve Bank of India (RBI) against the Bombay High Court order.

Earlier, the Bombay High Court had formed a three-member committee to sell the assets of HDIL involved in the PMC bank scam in a bid to recover the bank's money.

The scam came to light in September 2019, when the Reserve Bank of India came to know that the bank had allegedly opened fake accounts to hide more than Rs 4,355 crore of bankrupt HDIL.

According to the Reserve Bank of India, PMC Bank tampered with the core banking system and hid 44 accounts of problem loans, including HDIL, and had access to select bank employees.

The Economic Offenses Branch of Mumbai Police and Enforcement Directorate have registered cases against senior bank officials and promoters of HDIL. The ED has also seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by HDIL in connection with the case.