HDIL homebuyers write to PM Modi for help; claim Rs 350 crore stuck with bankrupt realtor

Around 450 aggrieved homebuyers of the scam-hit realty developer HDIL have written to Prime Minister Narendra Modi to help them out of their distress. The homebuyers, represented by the Whispering Towers Flat Owners Welfare Association wrote a letter to PM Modi seeking his intervention. According to the letter, the families have paid a total of Rs 350 crore to the bankrupt HDIL for the suburban Mulund project, which has been stuck for nine years now.  

"The project was launched in 2010 and bookings were accepted since then. But in the past nine years, only 18 floors of the 46 storeyed-tower have been built, while work has not even started on the second phase," the association said.

The letter also claims that the realtors had taken Rs 175 crore from Allahabad Bank, J&K Bank and Syndicate Bank for the Mumbai project. The letter claimed that another Rs 525 crore was raised by HDIL, which the homebuyers believe, were siphoned off.  "Another Rs 525 crore was raised by the company for the project but we believe the money has been siphoned off as the project has been stuck for long," it said.

The letter further said, "HDIL has done a blatant fraud by not informing Allahabad Bank about the sale of flats to home-buyers and has also cheated the customers by not issuing them NOCs from the bank for taking home loans from various lenders."

A few other projects like the Majestic Tower in Nahur and Paradise City in Palghar are also stuck.

HDIL that is facing insolvency proceedings after Bank of India dragged it to the NCLT has largely been into slum rehabilitation projects.

On October 3, the Economic Offence Wing of the Mumbai Police arrested the promoters of HDIL, Rakesh Wadhawan and his son Sarang Wadhawan, in a cheating case related to the scam at Punjab & Maharashtra Cooperative Bank.

The bank is under regulatory restrictions after the Reserve Bank found out financial irregularities, hiding and classification of loans given to HDIL.

As per the confession made by the suspended managing director of PMC, Joy Thomas, the bank maintained its loans to HDIL -- as much as over 73 per cent of its book or Rs 6,500 crore of the Rs 8,880 crore assets, as standard even when the bankrupt company was defaulting on repayments from the past two-three years.

(With PTI inputs)

Also read: PMC Bank officials deposited Rs 2,000 crore in HDIL bosses' personal accounts: Mumbai police

Also read: HDIL share locked in lower circuit after two directors arrested in PMC Bank case