Settle dues with HUDCO in 4 weeks: NCLAT to Vikram Bakshi

The National Company Law Appellate Tribunal on Tuesday gave four weeks time to businessman Vikram Bakshi for settling his dues with the Housing and Urban Development Corp (HUDCO).

According to the HUDCO, Bakshi has to pay Rs 195 crore to the state-run housing company. This amount was derived after taking into account Rs 66 crore that he has already paid.

Bakshi and McDonald's were equal partners of Connaught Plaza Restaurants Ltd (CRPL), till the former signed a deal on May 9 to sell his stake to McDonald's.

The bench on Tuesday said: "There cannot be a settlement in contravention of any judicial order."

The HUDCO had filed an intervention in the NCLAT citing a Debt Recovery Tribunal (DRT) order that prevents Bakshi from selling shares in CPRL, the McDonald's franchisee for north and east India.

It has also asked the parties concerned to file an affidavit with details of the dues.

During the proceedings, Bakshi's counsel said: "We have already paid Rs 66 crore and are ready to pay another Rs 70 crore."

The counsel said that HUDCO already possesses 4.65 acres of unencumbered property worth Rs 300 crore.

Bakshi's counsel also mentioned that they had deposited Rs 10 crore in the DRT on Tuesday.

On May 15, the NCLAT had said it would examine whether the settlement between Bakshi and the US-based fast food chain was permissible under law, in light of the DRT's order asking Bakshi to pay Rs 195 crore to HUDCO.

Appearing for the state-owned housing company, Solicitor General Tushar Mehta said if Bakshi sells his shares in CRPL, it would be difficult to recover the money.

The bench adjourned the matter till the next hearing on July 10.

--IANS

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