The promoters of DHFL were in discussion with lenders in 2019 to resolve the company as per June 7 circular of RBI. Later, the regulator superseded DHFL's board and referred it to NCLT for resolution.
On October 17, Kapil Wadhawan had offered his personal and family properties for repayment of outstanding loans of lenders to the company.
The co-founder of Dewan Housing Finance Corporation (DHFL) Kapil Wadhawan has moved an application at National Company Law Tribunal (NCLT), Mumbai, requesting to defer consideration of bids. Alleging that current bids were quite low, Wadhawan has urged NCLT to direct CoC to consider his resolution plan. He has also requested the tribunal to appoint an ‘independent expert’ to select most appropriate resolution plan. Accused of financial irregularities under the Prevention of Money Laundering Act (PMLA), Kapil Wadhawan is currently lodged at Taloja jail in Mumbai.
Wadhawan’s petition says intrinsic value of DHFL could not be disputed. The petition says the company has cash balances, investments and real estate worth more than Rs 16,000 crore. “The Applicant is given to understand that the upfront amounts of the bids is less than the aforesaid amount and in effect the bidders will utilise the cash and investments of DHFL itself to pay the upfront amount and the accruals from the business of DHFL to defray the balance without the bidders having to contribute any amount of any significance for the purpose of acquiring DHFL,” the petition adds.
Wadhawan has urged the tribunal to consider his financial package for the revival of DHFL. His petition says: “This Honorable tribunal to be pleased to direct DHFL administrator, CoC and Reserve Bank of India (RBI) to consider the financial package for revival of DHFL prepared in pursuance of June 7 circular with discussion and modification, as may be necessary, “ Kapil Wadhawan said in his application.
The promoters of DHFL were in discussion with lenders in 2019 to resolve the company as per June 7 circular of RBI. Later, the regulator superseded DHFL’s board and referred it to NCLT for resolution.
On October 17, Kapil Wadhawan had offered his personal and family properties for repayment of outstanding loans of lenders to the company. In a letter to DHFL administrator, Wadhawan said his offer would ensure maximum value for the assets that have been put on the block to repay loans. The valuation of these projects including Juhu Galli project and Irla project in Mumbai were about Rs 43,879 crore at a 15% lesser market value, the letter dated October 17 said.
Adani Properties had earlier offered to buy all loan assets of the mortgage lender for Rs 31,250 crore after second round of bids for DHFL. Before that, Oaktree Capital had submitted a bid of Rs 31,000 crore for all the assets of the company in the second round of bidding.
Kapil Wadhawan had sent another letter to DHFL administrator on November 11 alleging that bids received were ‘abysmally low’ and will result in a loss of public money. He also reiterated his request to the creditors to consider the proposal to make full repayment to all financial creditors without any haircut.