Tycoon in trouble: How Sarang Wadhawan's house of cards at HDIL fell apart

Poor cash collections were at the centre of HDIL's problems, said analysts

Sarang Wadhawan, vice-chairman and managing director of Housing Development & Infrastructure (HDIL), also known as “Sunny Dewan”, is not new to controversy. 

HDIL and Wadhawan’s name cropped up after the Reserve Bank of India (RBI) recently restricted the operations of the Punjab and Maharashtra Co-operative (PMC) Bank. PMC Bank lent Rs 6,500 crore to HDIL and the total loans to the company constituted 73 per cent of the bank’s total book.

PMC Bank Managing Director Joy Thomas confessed to the RBI last month that the management was cooking books and hiding crucial information on HDIL's debt, a non-performing asset for the bank,