Did Housing Development Infrastructure Ltd (HDIL) take loans from Punjab and Maharashtra Co-operative (PMC) Bank, which has now been placed under regulatory restrictions, in a bid to enter into one-time settlement (OTS) with Bank of India (BoI) and stave off the Corporate Insolvency Resolution Process (CIRP)?

As per a letter written by BoI to HDIL promoter Sarang Wadhawan in late August 2019, the former acknowleged receipt of two PMC Bank pay-orders totalling ₹96.50 crore towards OTS of the bank’s investments in HDIL’s non-convertible debentures (NCDs).

Though BoI has encashed the pay-orders issued by HDIL, it is yet to take a call on the OTS offer, a senior executive said.

As per HDIL’s latest annual report, it has taken loans payable on demand from PMC Bank. The loans are secured by pledge of fixed deposit receipts with the bank.

The report did not specify the quantum of loan taken by the real estate developer from PMC Bank.

HDIL has investments aggregating ₹72.50 lakh in the shares of PMC Bank as per the share linking to borrowing norm for taking loans from urban co-operative banks. The shareholding of HDIL in PMC Bank is 0.095 per cent of the latter’s subscribed and paid-up capital.

AGM cancelled

Meanwhile, PMC Bank’s 36th annual general meeting, which was scheduled to be held on September 28, has been cancelled.

Co-operative banking experts and depositors say the RBI action against the bank was too harsh and that the withdrawal cap is causing lot of hardship to the depositors. They emphasised that in similar situations involving large private sector banks, the regulator has let them off the hook by imposing only monetary penalties.

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