Page 321 - NHB AR 2020-21-3 complete- Print (1)
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same is pending for consideration before the Hon’ble Special Court. In the meantime,
Smt. Jyoti Harshad Mehta has filed a Civil Appeal before the Hon’ble Supreme Court
challenging the order passed by the Special Court in Misc. Application 62 of 2016 and
the same is pending. The other one is the Miscellaneous Petition No.2 of 2016 before
Special Court for recovery of balance i.e. ` 55.18 crore from Standard Chartered Bank
(SCB) based on the Letter of Indemnity dated 01.10.1993 given by SCB. The same is
pending for adjudication.
29.3 In Suit No. 28 of 1995 filed by SCB against Late Harshad S Mehta for the recovery of
` 506.54 crore, NHB, being an interested party, entered into an understanding with SCB
for sharing of the amount. According to the said understanding, NHB is also entitled
to a share in the amount to be realized by SCB from the decree passed in Suit No. 28 of
1995 in a proportion inverse to the proportion in which the amount of ` 1645.87 crore
was shared between NHB and SCB. The Hon’ble Supreme Court of India vide order
dated 02.05.2017 passed in Civil Appeal No.6326 of 2010 directed the Custodian for
release of ` 506.53 crore in favour of the SCB. In pursuance of the said order, the Special
Court in Custodian Report No.4 of 2017 directed remittance of Rs.506.53 crore in favour
of SCB subject to their furnishing Affidavit cum Undertaking. We are in touch with our
Counsel to take up the matter with SCB/ their Counsel for sharing the amount received
by them. However, these amounts will be accounted for on actual receipts.
30. Home Loan Account Scheme
30.1 The Home Loan Account Scheme (HLAS) was launched by NHB with effect from July
1, 1989 all over the country and was operated through Scheduled Banks and Housing
Finance Companies (HFCs). The HLAS has been discontinued effective from March 1,
2004.
30.2 The deposits under HLAS held by the banks/HFCs stood at ` 0.06 crore as per
information received by NHB and the same has been disclosed as contra entries in the
balance sheet.
30.3 India Housing Finance and Development Ltd., a Housing Finance Company in the
private sector, which was one of the participating HFC for mobilization of deposits
under HLAS, was advised by NHB not to open new accounts/accept fresh deposits
under HLAS with effect from 01.10.1994 due to serious financial problem faced by it.
NHB being the principal under the scheme, was obliged to meet liability to pay account
holders their dues. The Bank assessed the initial liability of ` 0.49 crore as against
verifiable claimants of IHFD under HLAS and made provision of the equal amount in
2004-05. As per the approved procedure, claims for refund of ` 0.27 crore was paid till
June 30, 2021 and balance of 0.22 crore stood as liability as on date.
Annual Report 2020-21 | 301
Smt. Jyoti Harshad Mehta has filed a Civil Appeal before the Hon’ble Supreme Court
challenging the order passed by the Special Court in Misc. Application 62 of 2016 and
the same is pending. The other one is the Miscellaneous Petition No.2 of 2016 before
Special Court for recovery of balance i.e. ` 55.18 crore from Standard Chartered Bank
(SCB) based on the Letter of Indemnity dated 01.10.1993 given by SCB. The same is
pending for adjudication.
29.3 In Suit No. 28 of 1995 filed by SCB against Late Harshad S Mehta for the recovery of
` 506.54 crore, NHB, being an interested party, entered into an understanding with SCB
for sharing of the amount. According to the said understanding, NHB is also entitled
to a share in the amount to be realized by SCB from the decree passed in Suit No. 28 of
1995 in a proportion inverse to the proportion in which the amount of ` 1645.87 crore
was shared between NHB and SCB. The Hon’ble Supreme Court of India vide order
dated 02.05.2017 passed in Civil Appeal No.6326 of 2010 directed the Custodian for
release of ` 506.53 crore in favour of the SCB. In pursuance of the said order, the Special
Court in Custodian Report No.4 of 2017 directed remittance of Rs.506.53 crore in favour
of SCB subject to their furnishing Affidavit cum Undertaking. We are in touch with our
Counsel to take up the matter with SCB/ their Counsel for sharing the amount received
by them. However, these amounts will be accounted for on actual receipts.
30. Home Loan Account Scheme
30.1 The Home Loan Account Scheme (HLAS) was launched by NHB with effect from July
1, 1989 all over the country and was operated through Scheduled Banks and Housing
Finance Companies (HFCs). The HLAS has been discontinued effective from March 1,
2004.
30.2 The deposits under HLAS held by the banks/HFCs stood at ` 0.06 crore as per
information received by NHB and the same has been disclosed as contra entries in the
balance sheet.
30.3 India Housing Finance and Development Ltd., a Housing Finance Company in the
private sector, which was one of the participating HFC for mobilization of deposits
under HLAS, was advised by NHB not to open new accounts/accept fresh deposits
under HLAS with effect from 01.10.1994 due to serious financial problem faced by it.
NHB being the principal under the scheme, was obliged to meet liability to pay account
holders their dues. The Bank assessed the initial liability of ` 0.49 crore as against
verifiable claimants of IHFD under HLAS and made provision of the equal amount in
2004-05. As per the approved procedure, claims for refund of ` 0.27 crore was paid till
June 30, 2021 and balance of 0.22 crore stood as liability as on date.
Annual Report 2020-21 | 301
