India Markets open in 4 hrs 46 mins

PMC Crisis: Attached HDIL Assets to Be Released for Auction Soon?

Reserve Bank of India-appointed PMC Bank administrator JB Bhoria has written to the Economic Offences Wing (EOW), asking it to release properties owned by HDIL owners, the Wadhawans. With the administrator’s nod, the Mumbai police can now move the court to have the properties detached.

Once the court issues a release order, the RBI administrator can move to auction the concerned properties.

Also Read: PMC Depositors Protest Outside RBI Mumbai Office Seeking Payback

Sources say, the EOW is likely to move the court sometime this week, to have the Rs 3,500-crore worth provisionally attached properties of the Wadhawans, detached. This could come as a huge relief to the depositors as the funds secured from auctioning the assets could be used to pay off depositors’ money.

The RBI administrator-led PMC Bank is entitled to auction properties belonging to the HDIL proprietors under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. According to this Act, the bank is empowered to auction assets belonging to a defaulter to settle its dues.

Also Read: PMC Scam Effect? RBI Might Tweak Insurance Cover for Deposits

Sources in the Mumbai police had earlier told The Quint that Rakeshkumar and Sarang Wadhawan had already consented to having their attached assets sold at ‘fair market value’ in a letter. The duo have also written multiple letters to the RBI stating the same.

The EOW and Enforcement Directorate (ED), have attached a total of 18 movable and immovable properties belonging to the Wadhawans.

The total value of properties attached by both investigating agencies amounts to over Rs 3,800. This includes a sprawling 2.5 acre villa in Alibaug, a fleet of luxury cars, a speed boat and two private jets.

Meanwhile, the father and son duo – Rakeshkumar and Sarang Wadhawan – has been in judicial custody in connection with the Rs 4,500-crore worth fraud case.

Also Read: PMC Victims: Rs 1 Lakh Insurance in 1993 Should be Rs 1 Cr Today

. Read more on Business by The Quint.RSS & BJP’s Nehru-Netaji ‘Cosplay’: Irony Dies a Thousand DeathsVeteran Telugu Actor Geetanjali Passes Away at 72 . Read more on Business by The Quint.