PMC Case: Supreme Court Puts Sale Of HDIL Assets On Hold

The Supreme Court put on hold the Bombay High Court order for sale of Housing Development and Infrastructure Ltd.’s assets to repay dues to crisis-hit Punjab and Maharashtra Cooperative Bank.

A top court bench headed by Chief Justice of India SA Bobde issued a notice on the Reserve Bank of India’s petition challenging the order. The central bank, represented by Senior Advocate Rakesh Dwivedi, sought a stay.

The Supreme Court, however, is yet to fix the next date of hearing.

The Bombay High Court last month, on a public interest litigation, ordered the sale of HDIL assets to repay PMC Bank, whose customers faced withdrawal caps after the management admitted to fraud. The lender had 73 percent exposure to the slum redeveloper.

The high court also appointed a three-member committee headed by retired Justice S Radhakrishnan to determine how the proceeds of the sale of assets will be used.