PMC Bank crisis: Administrator to seek valuation of HDIL's aircraft, yacht

The ED had earlier told the court that it did not have any objection to disposal of two airplanes and a yacht by the PMC Bank administrator.

The RBI-appointed administrator of scam-hit Punjab and Maharashtra Co-operative Bank has floated a request for proposal to appoint a consultant for valuation of two aircraft and a yacht owned by HDIL group firms.

These assets belong to HDIL group firms owned by Rakesh Wadhawan and his son Sarang, the prime accused in the Rs 6,500-crore scam at the cooperative lender.

In November, a local court had allowed the cooperative bank's administrator, J B Bhoria, to sell two aircraft- Dassault Falcon 200 (VT-HDL) and Challenger 300 (VT-PIL)- and one yacht (Ferreti 881 HT).

"The RBI-appointed administrator to PMC Bank intends to monetise a yacht and two aircraft through a transparent process. For the purpose, the administrator plans to appoint a valuer/consultant and invites proposals from interested parties," the administrator said in a public notice.

Earlier this month, the administrator had invited bids from advisors/process coordinator to sell these three assets.

The Enforcement Directorate (ED), which is probing the scam along with the Mumbai Police's Economic Offences Wing (EOW), has attached the movable properties of the Wadhawans.

These properties comprise 15 luxury cars, a seven- seater speedboat, besides two aircraft and a yacht belonging to HDIL and its promoters.

The ED had earlier told the court that it did not have any objection to disposal of two airplanes and a yacht by the PMC Bank administrator.

RBI Governor Shaktikanta Das had recently said the cooperative bank, with the help of professional valuers, is assessing the realisable value of assets mortgaged by borrowers as well the assets of the bank which have been seized by the EOW and ED.

Das had said the forensic audit report of the bank is likely to be finalised by the end of this month. The cooperative bank has been under the RBI's restriction since September 23, 2019, after the regulator found financial irregularities including under reporting of loans and non performing assets of real estate developer HDIL.

In September, PTI had reported that the cooperative lender's actual exposure to the bankrupt HDIL is over Rs 6,500 crore -- which is 73 per cent of its entire assets of Rs 8,880 crore.

In November, the RBI had informed the Bombay High Court that PMC Bank had used special codes to hide hundreds of dummy loan accounts of HDIL and of the 1,800 PMC Bank employees, only about 25 could access these loan accounts.

The regulator had said these few employees used an access code to hide and restrict the visibility of these dummy accounts of the realty developer.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel