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RBI begins bankruptcy proceedings against DHFL, sends stressed NBFC to NCLT

DHFL, once one of India's top shadow lenders, owes its creditors - which include mutual funds, banks, pension funds, insurance firms and retail investors - close to Rs 1 trillion

Reuters  |  Bengaluru 

DHFL

The has filed an application to begin proceedings against shadow lender Corporation Ltd (DHFL), it said Friday.

DHFL, once one of India's top shadow lenders, owes its creditors - which include mutual funds, banks, pension funds, insurance firms and retail investors - close to Rs 1 trillion ($13.93 billion).

The country's shadow banking sector, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS last year.

India's central bank said earlier this month it would begin proceedings against DHFL, and superseded the company's board, while appointing an administrator.

First Published: Fri, November 29 2019. 16:32 IST
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