The Company Law Tribunal has appointed insolvency resolution professional to carry out the functions as mentioned in the section 7(2) of section of the Insolvency and Bankruptcy Code, 2016, the company said.
HDIL further said: "The Company will file an apt reply and will take an appropriate measure, as and where required in the proceedings with the Tribunal and the Appellate Authorities."
The selloff in HDIL shares dragged the Nifty Realty sub-index lower. The Nifty Realty sub-index was down over 2 per cent.
Meanwhile, traders also sold HDIL shares on caution ahead of announcement of its June quarter earnings. Mumbai-based HDIL will report its earnings on Friday.
As of 10.09 am, HDIL shares recovered most of the intraday losses and were down 2.12 per cent at Rs 55.20, compared to 0.26 per cent decline in the broader Nifty.