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PMC Bank helped real estate developer HDIL pay off loans of other PSBs

Assisted promoters to retain control of real estate company

HDIL’s woes started in 2013 when the company’s stock saw a major crash
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HDIL’s woes started in 2013 when the company’s stock saw a major crash

Dev ChatterjeeRaghavendra Kamath Mumbai
PMC Bank helped real estate developer Housing Development & Infrastructure (HDIL) pay off loans of other public sector banks (PSBs) under one-time settlement schemes, so that the promoters could retain control over the real estate company. 

Court records show HDIL defaulted to loans from Union Bank of India, Syndicate Bank, Bank of India, Dena Bank, and Jammu & Kashmir Bank, leading to insolvency proceedings filed against the company by these banks. HDIL was quick to negotiate with the lenders under the one-time settlement scheme to repay part of their loans. A source said it was PMC Bank, which was funding

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First Published: Sep 30 2019 | 12:41 AM IST

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