Exposing the HDFC Bank–Poddar Housing Nexus: Investor Losses Mount in the ₹2,000 Crore Riviera Phase I, II, III Project
Serious allegations have emerged around HDFC Capital’s ₹150 crore funding of Poddar Housing’s stalled ₹2,000 crore Riviera Phase I–III project in Kalyan. Homebuyers and investors claim land litigation, insolvency risks, and weak due diligence left them exposed to heavy losses. With construction stalled and pledged assets eroding in value, demands are growing for regulatory and investigative scrutiny into the HDFC–Poddar financing structure.
Contents
- Exposing the HDFC Bank–Poddar Housing Nexus: Investor Losses Mount in the ₹2,000 Crore Riviera Phase I, II, III Project
- Riviera Project Background and Land Litigation in Kalyan
- HDFC Capital NCD Financing Structure Under Scrutiny
- Homebuyers, Investors, and Depositors Bear the Brunt
- Regulatory Oversight and Calls for Investigation
- Poddar Housing and Development Ltd. Alleged Fraud by Company Director
The Riviera project has drawn scrutiny after HDFC Capital Advisors Ltd, a subsidiary of HDFC Bank, financed Poddar Housing through ₹150 crore non-convertible debentures despite evident insolvency risks and unresolved legal disputes.
Investigative findings indicate these NCDs were backed by pledged Poddar shares, assets whose value eroded sharply due to stalled construction, land litigation, and the developer’s deteriorating balance sheet position.
The debentures were later bundled into the HDFC Capital Affordable Real Estate Fund-2, marketed to investors under the trusted HDFC brand, raising concerns over due diligence standards and fiduciary responsibility.
Riviera Project Background and Land Litigation in Kalyan
Poddar Housing launched Riviera Phase I, II, III in Kalyan, Maharashtra, during 2020, promising 3,412 apartments spread across nearly 24 lakh square feet, targeting middle-income homebuyers in the Mumbai Metropolitan Region.
Initial disclosures claimed Phase I pre-sales crossed ₹124 crore, while aggressive marketing assured timely possession, regulatory compliance, and clear land titles to prospective buyers.
However, the project soon became mired in land ownership disputes, court cases, and injunctions, which significantly delayed construction and restricted access to project financing.
Multiple buyer groups allege over ₹100 crore was collected from allottees without proportionate construction progress, pointing to fund diversion and weak escrow account discipline.
Poddar Housing’s track record has also drawn attention, with earlier FIRs including the 2016 Karjat Samrudhi Complex case, involving more than 650 buyers facing possession delays and alleged misrepresentation.
HDFC Capital NCD Financing Structure Under Scrutiny
Despite Poddar Housing’s fragile financial health, HDFC Capital subscribed to unsecured NCDs worth ₹150 crore, relying primarily on pledged promoter shares as collateral security.
Market analysts note these shares lost substantive value due to Riviera’s stalled status, making redemption of the debentures commercially improbable under prevailing conditions.
These NCDs were subsequently repackaged into an alternate investment fund structure, transferring risk to fund investors while ensuring upfront fees and returns for the fund manager.
Public filings confirm HDFC Capital funds were deployed for Poddar’s land acquisition and project expenses, even as legal disputes and buyer complaints intensified.
Recent developments, including STCI Finance withdrawing its insolvency petition under the Insolvency and Bankruptcy Code, underline continuing legal uncertainty rather than financial recovery.
Homebuyers, Investors, and Depositors Bear the Brunt
Thousands of Riviera homebuyers reportedly paid up to ₹60 lakh per apartment, continuing to service home loan EMIs while facing indefinite delays and rising personal debt.
Retail and high-net-worth investors in the affordable housing fund now confront potential 100 percent capital erosion due to Poddar’s inability to service debenture obligations.
Bank depositors and institutional lenders remain indirect stakeholders, as public savings underpin such structured finance products, amplifying systemic risk within the real estate lending ecosystem.
Critics argue the financial structure disproportionately shields the fund manager, while losses cascade down to buyers, investors, and ordinary citizens with limited risk awareness.
Regulatory Oversight and Calls for Investigation
The Riviera episode has raised pressing questions over HDFC Bank’s oversight of its subsidiary and the adequacy of internal risk controls applied to stressed real estate developers.
Legal experts have called for scrutiny by SEBI, RBI, and enforcement agencies into possible collusion, disclosure lapses, and violations of investor protection norms.
Sprouts News Special Investigation Team notes that proxy financing models of this nature demand urgent regulatory intervention to prevent further erosion of public trust.
With distressed homebuyers reporting severe financial and mental stress, regulators face mounting pressure to act decisively before the crisis deepens further.
Poddar Housing and Development Ltd. Alleged Fraud by Company Director
The following directors of Poddar Housing and Development Limited have faced serious allegations from multiple complainants:
- Dipak Kumar Poddar – Founder and Executive Chairman
- Richard Wilson – Chairman and Non-Executive Director
- Rohitashwa Poddar – Managing Director
If you believe you have also been cheated or affected by the actions of these directors or the company, you may contact us. We will assist with legal guidance and help raise your voice in pursuit of justice.
Scam Exposed
Investigative journalist Unmesh Gujarathi has brought to light a large-scale real estate and financial fraud, exposing systemic lapses, misleading financing structures, and the devastating impact on homebuyers and investors.
Call for Justice
If you are facing similar fraud, misrepresentation, or financial abuse, reach out to us. We are committed to pursuing accountability relentlessly and will not stop until justice is delivered.
