Money & Banking

HUDCO moves NCLAT to recover ₹60 cr from McDonald’s pay out to Vikram Bakshi

PTI New Delhi | Updated on May 13, 2019 Published on May 13, 2019

Vikram Bakshi   -  Bloomberg

State-owned HUDCO on Monday approached the NCLAT to recover its ₹60-crore loan plus interest from Vikram Bakshi, who has agreed for an out-of-court settlement with McDonald’s.

The Counsel for HUDCO filed an intervention application before a two-member Bench of the National Company Law Appellate Tribunal, headed by Chairperson SJ Mukhopadhyay, pleading that its dues should be cleared first from the amount that Bakshi was to receive from the US fast food chain.

The state-owned firm pleaded before the Bench that it has the first right over the amount to be received by Bakshi under the settlement agreement with McDonald’s. Balance amount, if any, could be transferred to him.

HUDCO claims that it had given ₹60-crore loan to Bakshi for Ascot Hotels Pvt Ltd and the loan account turned into a non-performing asset.

Bakshi’s Counsel declined to comment. In 2013, the Housing and Development Corporation Ltd (HUDCO) had filed a criminal case under the Negotiable Instruments Act against Bakshi in a 2012 cheque bounce case and said Bakshi’s dues had crossed ₹75 crore.

HUDCO had also filed cases against Bakshi under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

McDonald’s settlement

The NCLAT is expected to pass on order on May 15 on the out-of-court settlement between Bakshi and McDonald’s.

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Published on May 13, 2019
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