SC asks HDFC on funds debited from IL&FS escrow account

The Supreme Court on Friday asked HDFC to furnish details of the money it had “illegally” drawn from the IL&FS escrow account, since the National Company Law Appellate Tribunal had restrained lenders from recovering any money for serving debt payments pending resolution process of the infra company and its 348 group entities.

A bench led by justice UU Lalit while seeking response from HDFC Bank and HDFC asked the latter to “indicate status of the amounts withdrawn from the escrow account” from October 15, 2018, the date on which the appellate tribunal had passed the prohibitory orders. It also stayed the NCLAT’s May 15 order that had allegedly permitted HDFC to enforce the terms of its loan agreement and make recovery of its claims from the amounts lying in IL&FS bank account wherein the rents received by the infra company were being deposited.