PMC Bank SCAM: Wadhawan asset auction attracts no bids, likely to be a long drawn process

Punjab and Maharashtra Cooperative Bank could not secure any buyers in the the asset auction of Housing Development and Infrastructure Limited group (HDIL) promoters Wadhawans. The aeroplanes, Dassault Falcon 2000 and Bombardier Challenger 300 and the Ferreti Yacht 881 are valued at Rs 350 crores.

Punjab and Maharashtra Cooperative Bank could not secure any buyers in the the asset auction of Housing Development and Infrastructure Limited group (HDIL) promoters Wadhawans. The aeroplanes, Dassault Falcon 2000 and Bombardier Challenger 300 and the Ferreti Yacht 881 are valued at Rs 350 crores.

The bank has not set a reserve price for the assets, the only condition mentined on its website is that the biddeer pay 10% as earnest money. The bank got embroiled in the controversy as its expore to HDIL was 73% of its loan book. The RBI norm is maximum 15% of exposure to a single company or 20% to a group. Almost Rs 4,000 crore worth property owned by the Wadhawans is mortgaged with the PMC bank.

It is speculated that thee auction will be a long drawn process and the president of the PMC Bank Depositor’s Forum Association has urged Finance Minister to intervene in this issue.