Adequate security cover provided for loans taken from PMC Bank: HDIL

Housing Development and Infrastructure Limited (HDIL) said on Tuesday that adequate security cover had been provided by the company for the loans taken from PMC Bank.

In a statement to the exchanges, HDIL said, "The company has over a period of time availed of banking facilities from various banks and institutions including PMC Bank in the normal course of business. Adequate security cover in favour of the banks, including PMC Bank, has been created over the assets of the company for these facilities in due compliance with all banking regulations in line with RBI guidelines. All the books of the company are audited and reflect a true and fair picture as regards to the affairs of the company and the group," it said

HDIL said it was facing temporary cash flow issues due to the external environment in the real estate sector and it was because of the same that the company had been admitted under IBC 2016.

"With relation to borrowings from PMC, we have already issued letters requesting an appointment with the administrator in charge of the bank to put forth the true and correct picture and to discuss a strategy to safeguard the interest of all stakeholders, including PMC Bank and its depositors," it added.

It said it had been made aware of certain regulatory action against PMC Bank and its management. "It is also learnt that certain action is being initiated against HDIL and its promoters. We are unaware of any action against HDIL and its promoters," the company said.