The Reserve Bank of India (RBI) has given its approval to the resolution plan of the Piramal Group to take over Dewan Housing Finance Limited (DHFL) for its revival.
Key Points
- RBI has approved took over of indebted DHFL by the Piramal Group.
- Now, the central bank appointed administrator will file an application at Mumbai National Company Law Tribunal for getting approval from the court.
- The application is likely to be filed in the next two-three days.
- RBI had a timeline of 45 days to approve it but just gave it approval in around 3 weeks.
- Billionaire Ajay Piramal won the most contested bankruptcy bid for Dewan Housing Finance Ltd.
- Piramal’s bid got around 94% of the votes of the creditors, followed by 45% by Oaktree and 18% by Adani Capital.
- As per the rules, the winning bidder is backed by at least 60% of lenders by value.
- The RBI had put DHFL under administrator after charges of siphoning off funds and corruption were filed against the promoter family including the chairman Kapil Wadhawan. The Enforcement Directorate and other central agencies are pursuing prosecution against the former management.
DHFL
It is a housing finance company (deposit-taking) formed in the year 1984. It is headquartered in Mumbai. It was the 2nd housing finance company established in India.