DHFL: RBI was never in favour of Wadhawan’s settlement offer

The lenders of DHFL have been shocked by the NCLT’s Might 19 order, asking them to contemplate ousted promoter Kapil Wadhawan’s supply for the corporate.

By Ankur Mishra

The Reserve Financial institution of India (RBI) was by no means in favour of contemplating Kapil Wadhawan’s settlement supply for Dewan Housing Finance Corporation (DHFL). The regulator’s stance was made clear throughout RBI’s submission earlier than the Mumbai Bench of the Nationwide Firm Legislation Tribunal (NCLT) on January 15, 2021. On Tuesday, the regulator’s submission was learn by the counsel of the Committee of Collectors (CoC) at Nationwide Firm Legislation Appellate Tribunal (NCLAT), the place the decrease courtroom’s order was put aside.

RBI, in its submission at NCLT Mumbai on January 15, 2021, had mentioned, “Affording the applicant (Kapil Wadhawan) even a chance of presenting a settlement supply could quantity to allowing the applicant to take good thing about its personal flawed, which result in the whole downfall of DHFL and resultantly, the assorted stakeholders.”

The Reserve Financial institution’s stance is essential because the regulator had referred DHFL for insolvency proceedings. DHFL is the first financial services agency to be despatched to the chapter tribunal after the federal government notified the principles for referring monetary providers suppliers (FSPs) on November 15, 2019. Not like insolvency proceedings for firms from different sectors, an FSP creditor or debtor can not strategy the tribunal with out being referred by a regulator.

The regulator additionally raised concern on the alleged critical offences by Wadhawans and mentioned, “It’s pertinent to say herein that the applicant is the ex-promoter of DHFL in opposition to whom numerous proceedings, civil and / or felony, have been filed, alleging dishonest, fraud, siphoning of funds and such different critical offences. The applicant is presently in judicial custody and most regulatory companies like CBI, EoW, ED and many others. are at current investigating in opposition to the applicant. This being so, affording the applicant even a chance of presenting a purported settlement supply could quantity to allowing the applicant to take good thing about its personal flawed, which led to finish downfall of DHFL and resultantly, numerous stakeholders.”

The lenders of DHFL have been shocked by the NCLT’s Might 19 order, asking them to contemplate ousted promoter Kapil Wadhawan’s supply for the corporate. The order from the tribunal got here as a shock for lenders as that they had already accepted a bid of Rs 34,250 crore from Piramal Capital and Housing Finance (PCHFL) for the troubled mortgage lender. Wadhawan had earlier proposed a settlement plan of Rs 91,158 crore, claiming he would repay 100% of the principal to all of the collectors. The settlement supply was rejected by the lenders wherein he had proposed to repay lenders by promoting his property.

DHFL has been present process insolvency proceedings at NCLT in Mumbai since December 3, 2019. The troubled mortgage lender has admitted claims of `87,120 crore, with State Bank of India (SBI) being the lead creditor. Whereas bondholders have claimed Rs 45,550 crore, monetary collectors have sought Rs 41,342.23 crore from the mortgage financier.

Emails despatched to RBI, DHFL administrator, and SBI didn’t elicit any response until the time of going to press.