You are here: Home » Companies » News
Business Standard

Ahead of bankruptcy process, RBI puts DHFL board under administrator

The announcement comes after the government last week empowered the RBI to refer stressed NBFCs and HFCs having assets worth of at least Rs 500 crore to insolvency court

Press Trust of India  |  Mumbai 

Ahead of bankruptcy process, RBI puts DHFL board on under administrator

The Reserve Bank on Wednesday superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments.

The central bank has also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third largest pureplay mortgage lender.

The announcement comes after the government last week empowered the to refer stressed NBFCs and HFCs having assets worth of at least Rs 500 crore to insolvency court.

"The Reserve Bank has today superseded the board of owing to governance concerns and defaults by in meeting various payment obligations," said in a statement.

It further said shortly initiate the process of resolution of the company under the bankruptcy code, 2019 and would also apply to the NCLT for appointing the administrator as the resolution professional.

First Published: Wed, November 20 2019. 18:53 IST
RECOMMENDED FOR YOU