Public sector banks to face legal hurdle in recovering HDIL dues

The ED is in the process of attaching the properties of HDIL

The public sector banks (PSBs) that had given loans to HDIL will face prolonged litigation in recovering their dues as several properties mortgaged by the real estate developer and its promoters to the banks have been seized by the investigating agencies.

Besides, the one-time settlements (OTS) the PSBs had signed with HDIL in the past few years may face litigation if the OTS money was paid by taking fresh loans from Punjab and Maharashtra Co-operative (PMC) Bank. These loans from PMC Bank would be considered “proceeds of crime” by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act