Shares of Housing Development and Infrastructure Ltd (HDIL) were locked in 20 per cent lower circuit on Wednesday after the National Company Law Tribunal (NCLT) admitted Bank of India's insolvency plea against the realtor.
The bank had approached the Mumbai bench of the NCLT against HDIL after it failed to repay dues of Rs 522 crore.
"This is to inform that Housing Development and Infrastructure Limited has been admitted under the provisions of Insolvency Bankruptcy Code (IBC) 2016 in term of order dated August 20 passed by National Company Law Tribunal Special Bench pursuant to an application filed by the Bank of India under Section 7 of IBC," the company said in a statement.
"The company is under the process to file an appeal to National Company Law Appellate Tribunal against the order passed by National Company Law Tribunal," HDIL added.
Last year, HDIL had reportedly settled two similar bankruptcy petitions by J & K Bank and Andhra Bank, paying the lenders Rs 334 crore and Rs 40 crore, respectively.
At 11:30 am, HDIL was down 19.96 per cent at Rs 8.78 per share.