Hirco plc Business Update (9625V)
19 Diciembre 2013 - 3:46AM
UK Regulatory
TIDMHRCO
RNS Number : 9625V
Hirco plc
19 December 2013
19 December 2013
HIRCO PLC
(the "Company")
Business Update
The Board of Directors of Hirco Plc wishes to respond to recent
public statements by a spokesman for Niranjan Hiranandani regarding
Mr. Hiranandani's responsibility for the insolvency of township
projects in Panvel and Chennai and ongoing suggestions that Hirco
Plc in some way bears responsibility for the defaulted bank
loans.
Hirco Plc has no physical presence in India. Hirco Plc was
created in 2006 to invest in FDI compliant Indian real estate
development projects to be sourced by Niranjan Hiranandani, his
wife Kamal Hiranandani and entities controlled by them. At the
outset Mr. Hiranandani and his daughter Priya
Hiranandani-Vandrevala were Hirco Plc's Chairman and CEO,
respectively.
In 2007, Hirco Plc paid approximately GBP350 million into
accounts controlled by Mauritius legal entities that in turn were
controlled by Hiranandani family interests. That money was largely
used to purchase 588 acres of land in Panvel and 368 acres of land
in Chennai from Hiranandani-controlled entities. The acquired land
was held by several Indian companies including Hiranandani Palace
Gardens and Sunny Vista Realtors. Hiranandani Palace Gardens and
Sunny Vista Realtors were controlled by Hiranandani family
interests and included among their directors at various times
Niranjan Hiranandani, Darshan Hiranandani, Kamal Hiranandani, Cyrus
Vandrevala, Jerxis Vandrevala, and various people appointed by the
Hiranandani and Vandrevala families.
It was these legal entities - Hiranandani Palace Gardens and
Sunny Vista Realtors - controlled by these individuals at various
times that obtained lines of credit totaling Rs. 1,490 Crores and
borrowed money totalling approximately Rs. 1,384 Crores from
various Indian lenders including HDFC, Yes Bank, Tata Capital,
Punjab National Bank, Andhra Bank, UCO Bank, and LIC Housing
Finance. Hirco Plc has been informed that Hiranandani Palace
Gardens and Sunny Vista Realtors defaulted on their obligations and
currently owe these lending institutions approximately $160 million
(approximately Rs. 991 Crores). On 16 December 2013 Punjab National
Bank placed a notice in the Hindustan Times that Sunny Vista
Realtors would be sold at auction on 22 January 2014 to satisfy
unpaid obligations to various lenders.
Hirco Plc had no involvement whatsoever in borrowing this money
and had no control or involvement in any of the affairs of
Hiranandani Palace Gardens or Sunny Vista Realtors. Hirco Plc had
no involvement in the development of the Panvel and Chennai
projects or the sale or collection of money from people who
purchased units in these developments. These activities were
carried out by another Hiranandani/Vandrevala controlled entity,
Hiranandani Developments Private Limited. Although Mr. Hiranandani
resigned as Chairman of Hirco Plc in late 2010 following
allegations of misconduct in India and his daughter resigned soon
thereafter, both were directors at various times of Hiranandani
Palace Gardens, Sunny Vista Realtors, or Hiranandani Developments
when many of the defaulted loans were made and continued to serve
as directors of various of these companies for some time (and in Mr
Hiranandani's case until August 2012), when they resigned for
unexplained reasons and were replaced by other persons appointed by
the Hiranandani and Vandrevala families.
Hirco Plc will continue to pursue redress against Niranjan
Hiranandani and Priya Hiranandani, for fraud and other wrongdoing
through the ongoing litigation and arbitration proceedings.
For further information please contact:
IOMA Fund and Investment Management Limited Tel: +44 (0)1624 681250
Philip Scales
N+1 Singer Tel: +44 (0) 20 7 496 3000
James Maxwell/Nick Donovan
This information is provided by RNS
The company news service from the London Stock Exchange
END
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