DHFL lenders challenge NCLT order on considering Wadhawan’s offer

By: |
May 24, 2021 9:44 PM

The petition has been filed by the Union Bank of India on behalf of the Committee of Creditors (CoC) of Dewan Housing Finance Corporation Ltd (DHFCL).

On the 14th page of the 86-page NCLT order by HP Chaturvedi and Ravikumar Duraisamy, it says DHFL no longer is a deposit taking NBFC but a non-deposit taking one.On the 14th page of the 86-page NCLT order by HP Chaturvedi and Ravikumar Duraisamy, it says DHFL no longer is a deposit taking NBFC but a non-deposit taking one.

The committee of creditors of DHFL has challenged the National Company Law Tribunal (NCLT) order directing the lenders to consider the offer by the debt-ridden mortgage firm’s erstwhile promoter Kapil Wadhawan.

An appeal challenging NCLT Mumbai bench’s order has been filed before the National Company Law Appellate Tribunal (NCLAT) and is scheduled for hearing on Tuesday.

The matter will be heard by a vacation bench of NCLAT comprising Acting Chairman Justice A I S Cheema and Member Technical V P Singh.

The petition has been filed by the Union Bank of India on behalf of the Committee of Creditors (CoC) of Dewan Housing Finance Corporation Ltd (DHFCL).

Last week, NCLT asked the RBI-appointed administrator of DHFL to present the settlement plan offered by jailed Wadhawan to the CoC.

The tribunal gave ten days’ time for the CoC to consider the offer.

According to sources, lenders in their petition have requested the appellate tribunal to stay the NCLT order.

In January this year, the CoC voted in favour of selling DHFL to Piramal Group under the bankruptcy process.

While the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) have given their approvals, a final nod from the NCLT is awaited.

Last year, Wadhawan had made his settlement offer to the CoC and it was rejected, citing lack of credibility and the valuations attached to the proposed asset sales.

In the plan, Wadhawan had proposed to repay lenders by selling assets.

In November 2019, RBI had referred DHFL—then the third-largest pure-play mortgage lender—for resolution under the Insolvency and Bankruptcy Code (IBC).

DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds and individual investors who kept fixed deposits with the company.

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