Rakesh Wadhwan approaches law tribunal against insolvency proceedings

Former housing Development Infrastructure Limited (HDIL) promoter Rakesh Wadhawan has approached the National Company Law Tribunal (NCLT) to allow him to propose “a viable revival plan” in the Corporate Insolvency Resolution Process (CIRP).
In his application, Wadhawan has sought to be allowed to propose a viable revival plan in the CIRP or a one-time settlement in the insolvency process, underscoring that he is interested in the maximisation of the resolution value.
Wadhawan has alleged that he is “attempting to highlight the systematic loot of the assets of HDIL by business and joint venture partners of the corporate debtor and the conspiracy hatched by the Resolution professional (RP), authorised representatives and members of committee of creditors (CoC)”.
Creditors have filed a claim of Rs 8,138 crore, including interest and government dues. Wadhawan has submitted in the petition to the Mumbai bench of NCLT that the valuation of HDIL is more than Rs 6,500 crore, but the approved resolution plan proposes less than Rs 600 crore.
The CIRP was initiated against HDIL in August 2019, and Abhay Manudhane was appointed as the resolution professional.
In 2019, the EOW registered a case in connection with the alleged fraud at the multi-state cooperative bank having 137 branches in six states.
It was alleged that PMC Bank had masked 44 problematic loan accounts involving advances to the tune of nearly Rs 7,500 crore, the majority of which was extended to the HDIL, by tampering with its core banking system, and the accounts were accessible only to limited staff members.
The money was allegedly accessed by the Wadhawans without any collateral.