HDIL is under the insolvency resolution process under Insolvency and Bankruptcy Code 2016. Going through the procedure under IBC 2016, HIDL shared the provisional list of Prospective resolution applicants. The invitation for expression of interest was first published in February and subsequently revised several times and after the whole edition, the invitation application closed on 31st July 2020. Overall, 6 EOIs have been received from interested parties.
The interested parties include Adani properties, Suraksha Asset Reconstruction, Sunteck Realty, International Asset Reconstruction Company, N S Software, and Harsha Vardhan Reddy. Out of these 6 interested parties later 3 parties were found ineligible.
International asset reconstruction has not submitted the undertaking under 29A of IBC in the prescribed format, it will become eligible once it furnishes the requirement on or before 8th August. The remaining 2 interested parties i.e. N S Software and Harsha Vardhan Reddy did not meet the criteria of having minimum net worth Rs 500 crore, or asset management of Rs. 2000 crore or committed frauds of Rs. 250 crore at the end of March 2019.
Regarding the provisional list, the filing department said, "Any objection to inclusion or exclusion of a prospective resolution applicant in the provisional list may be made with supporting documents within five days from the date of issue of the provisional list i.e. by August 8, 2020. "After considering the objections, if any, received by the Resolution Professional, the final list of prospective resolution applicants (PRAs) will be published,".
The whole procedure of Insolvency resolution is being managed by the resolution professional Abhay N Manudhane appointed by NCLT Mumbai bench vide order dated August 20. The promoters of HDIL Rakesh and Sarang Wadhawan are in jail for Punjab & Maharashtra Cooperative Bank scam case.