The National Company Law Tribunal (NCLT) today cleared Piramal Group’s overall resolution plan pertaining to troubled Dewan Housing Finance (DHFL), with few added conditions. The NCLT disapproved former DHFL promoter Kapil Wadhawan’s request to allow access to a copy of the resolution plan.
In its statement, a copy of which has been sent to The Banking & Finance Post, Piramal Group said, “We are pleased with the judgment today by the Honorable NCLT for approving our resolution plan for DHFL. This follows the endorsement of 94% of lenders, and the subsequent approvals from RBI and CCI, and reiterates the strength and quality of our bid. This is one of India’s largest IBC proceedings, and the very first in the financial sector. In that regard, it is an important and positive trendsetter for the future. The approval from NCLT is a significant milestone in DHFL’s resolution and an affirmation of the sanctity of the IBC process in India.”
We are committed to collaborating with all relevant authorities, regulators, creditors and investors involved in this resolution and look forward to a speedy culmination of the resolution process,” it added.
On 25 May, the NCLAT put a stay on the order of the NCLT that directed the DHFL lenders to consider Wadhwan’s settlement offer. This development came after the RBI appointed administrator for DHFL appealed against the NCLT’s order at the appellate tribunal. NCLAT’s final order is pending on this matter.
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Today, the tribunal asked the company’s Committee of Creditors (CoC) to consider providing money to small fixed deposit (FD) holders as per the approved resolution plan. “We are not remanding the plan back to CoC; we respect their commercial wisdom,” the NCLT said passing the order.
Wadhawan has been accused in the Yes Bank-DHFL loan bribery case.
DHFL owes its lenders around Rs 91,000 crore. State Bank of India is its biggest creditor, with an exposure of around Rs 10,000 crore. Other lenders include Bank of India, Canara Bank, NHB, Union Bank of India, Syndicate Bank, and Bank of Baroda. The RBI had on November 20, 2019, superseded DHFL’s board of directors on account of “governance concerns and defaults by DHFL in meeting various payment obligations”.