CoC rejects DHFL's proposal for raising payout to small investors

The Mumbai Bench of the NCLT approved Piramal Group's resolution plan for the beleaguered DHFL on June 7.

The committee of creditors (CoC) of the beleaguered home financier Dewan Housing Finance Corporation (DHFL) has rejected the proposal to increase the payout to small investors. The CoC — by an overwhelming majority of 89.19 per cent — rejected the proposal to increase the payout as suggested by the National Company Law Tribunal (NCLT).

While the bankruptcy tribunal approved the overall plan, it had asked for reallocating funds to fixed-deposit (FD) holders and small investors. That said, it did not send the plan back to the CoC; rather, it said the final decision was left to the lenders.

“With regard to the