DHFL gets no objection from RBI, files application with NCLT for resolution

DHFL on Thursday said it has received no objection from the Reserve Bank and has filed application with NCLT for submission of the resolution plan of Piramal Capital & Housing Finance.

Earlier this week, DHFL had announced Piramal group's resolution plan getting approval from the RBI.

Pursuant to the receipt of no objection from Reserve Bank of India as per Insolvency and Bankruptcy Rules, 2019, the administrator of Dewan Housing Finance Corporation Limited (DHFL) has filed an application for submission of resolution plan of Piramal Capital & Housing Finance Limited (PCHFL) with the adjudicating authority NCLT, Mumbai Bench, DHFL said in a regulatory filing.

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

In November 2019, the Reserve Bank had referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

It was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC.

Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).

The company is being investigated by the ministry of corporate affairs from December 2019 through the Serious Fraud Investigation Office (SFIO). The Enforcement Directorate is also probing the company in connection with loans given by it to certain borrowers.

The CBI has also initiated investigation in connection with certain loans granted by the company.

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

Earlier this month , DHFL posted a consolidated net loss of Rs 13,095.38 crore for the third quarter ended December 2020 against a net profit of Rs 934.31 crore in the year-ago quarter.

Sequentially, the company witnessed widening of net loss from Rs 2,122.65 crore in the second quarter ended September 2020.

Stock of DHFL closed 5 per cent up at Rs 18.90 apiece on BSE.