You are here: Home » Companies » News
Business Standard

With RBI at helm of affairs, DHFL lenders expect faster resolution

It can be noted that under the IBC, a dud asset case has to be resolved within 180 days, which can be extended to 330 days after the latest amendments.

Press Trust of India  |  Mumbai 

DHFL

With the Reserve Bank spearheading the bankruptcy process of the troubled mortgage lender DHFL, the system can expect a faster resolution, a top banker has said.

The banker also defended the lenders, saying they cannot be blamed for the troubles with the third largest pureplay mortgage player, which became the first NCLT case from the NBFC/HFC segment, and asserted that left to themselves, the banks would have easily resolved the case.

The comments come a day after the RBI invoked the provisions of the recently notified provisions in the IBC and superseded the board and appointed an administrator and said the company would go to NCLT shortly.

"Those timelines which are there in regular IBC may not be needed in this case because it is a regulator- driven process," the banker told PTI, wishing not be quoted.

"Obviously it is different than any other IBC process. A regulator-driven IBC process will accelerate the entire process," he added.


 


He said the Section 227 of the IBC has been a boon for the lenders, which will help resolve toxic cases involving NBFCs like DHFL, and hoped that there should not be very many of such cases.The banker said lenders will help the RBI in the process as they know the asset very well and will act as the first point of call for the central bank.

Corporate lawyer Behram Vakil, who was involved in the framing of the IBC, also said the amendments will give more teeth to the law and that is an "uncharted territory" and expressed confidence that the RBI will move fast on

Meanwhile, the banker also defended the lenders' role in the DHFL case so far, hinting that the presence of mutual funds who had their own views on various aspects, prevented the asset from getting resolved till now.

He said DHFL's biggest asset is the loans that it has made, and made it clear that like any other NBFC, it would have done securitisation deals.

First Published: Thu, November 21 2019. 22:50 IST
RECOMMENDED FOR YOU