DHFL seeks resolution plan from NCLT

DHFL seeks resolution plan from NCLT

India's third-largest pure-play mortgage lender has moved the National Company Law Tribunal for submission of Piramal Group's resolution plan

The Dewan Housing Finance Corporation Limited (DHFL) has moved an application with the National Company Law Tribunal (NCLT), Mumbai bench, seeking submission of the resolution plan of Piramal Capital & Housing Finance Limited (PCHFL).

DHFL, India's third-largest pure-play mortgage lender, had recently announced that it had received the mandatory no objection from the Reserve Bank of India (RBI) under the Insolvency and Bankruptcy Rules, 2019. DHFL also claimed that the RBI had approved Piramal Group's resolution plan.

The resolution plan has been approved by the Committee of Creditors (CoC).

The RBI had referred DHFL to the NCLT for insolvency proceedings in November 2019, using special powers vested with it under Section 227 of the Insolvency and Bankruptcy Code (IBC).

DHFL's board was earlier dissolved and R Subramaniakumar was appointed as the administrator and the resolution professional under the IBC.

DHFL is facing investigations by various government agencies for alleged frauds. The federal Corporate Affairs ministry is probing it through the Serious Fraud Investigation Office (SFIO). The Enforcement Directorate is also looking into the company in connection with loans given by it to some borrowers, while the Central Bureau of Investigation (CBI) has started investigating DHFL in connection with certain loans it had granted.

The financial creditors have claimed outstanding worth Rs 87,031 crore from DHFL.