PMC Bank Puts HDIL Dahisar Land on Auction for Rs. 1,234 Cr

A 426-acre land parcel in Dahisar West, formerly owned by Housing Development and Infrastructure Limited (HDIL), is up for auction.

The land, mortgaged to PMC Bank (now merged with Unity Small Finance Bank), was seized by the bank on December 26, 2023, to recover a part of its dues from HDIL and associated entities, including Rakesh Wadhawan and Sarang Wadhawan.

The reserve price for the auction has been set at Rs. 1,234.62 crore, and the bank seeks to recover Rs. 2,059.30 crore.

Key Highlights

• Unity Bank to auction 426-acre HDIL land in Dahisar for Rs. 1,234.62 Cr
• Legal disputes and environmental clearances pose development hurdles
• PMC Bank collapsed in 2019 with Rs. 6,226 Cr exposure to HDIL

The e-auction is scheduled for November 3, with bids accepted in multiples of Rs. 2 crore. A Rs. 15 crore earnest money deposit (EMD) is mandatory for participation.

The plot, situated next to the Dahisar Crematorium and along the Dahisar river, requires environmental clearances from the MoEF, MCZMA, and possibly the Airport Authority of India (AAI) for high-rise development due to proximity to the Remote Receiving Station.

Legal complications persist, with active cases under the Securitisation Act, and a pending Debt Recovery Tribunal (DRT) order restricting third-party rights. Additionally, BMC has initiated acquisition of 15.53 acres of the land to recover municipal dues.

Also Read: CIDCO Announces Land Auction Ahead of NMIA Launch

This auction is part of Unity Bank’s efforts to recover funds after PMC Bank’s collapse in 2019, largely attributed to HDIL’s default on loans totaling Rs. 6,226.01 crore of the bank’s Rs. 8,300 crore book. The Wadhawans were arrested in 2019 and granted bail in April 2024.