Piramal group gets RBI nod for DHFL acquisition
The resolution plan was approved by the CoC in its 18th meeting concluded on January 15, 2021
Piramal Group on February 18 said the Reserve Bank of India (RBI) is understood to have cleared the resolution plan for debt-ridden DHFL as approved by the Committee of Creditors (CoC).
The CoC had approved a resolution plan submitted by a Piramal Group company, Piramal Capital and Housing Finance Limited, last month.
“We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC,” Piramal Group said in a statement.
The resolution plan was approved by the CoC in its 18th meeting concluded on January 15, 2021.
Last week, DHFL posted a consolidated net loss of ₹13,095.38 crore for the third quarter ended December 2020 against a net profit of ₹934.31 crore in the year-ago quarter. Sequentially, the company witnessed widening of net loss from ₹2,122.65 crore in the second quarter ended September 2020.
In November 2019, the Reserve Bank referred Dewan Housing Finance Ltd (DHFL), the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.
DHFL was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC. Prior to that, the company’s board was superseded and R. Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).
The company is being investigated by the Ministry of Corporate Affairs from December 2019 through the Serious Fraud Investigation Office (SFIO). The Enforcement Directorate is also probing the company in connection with loans given by it to certain borrowers. The CBI has also initiated investigation in connection with certain loans granted by the company.
Apart from this, the CBI is also investigating into the matter of amounts invested by a Uttar Pradesh State Government entity — Provident Fund in the Fixed Deposits of the company.
The financial creditors have claimed outstanding worth ₹87,031 crore from DHFL.
DHFL shares traded 4.94% higher at ₹18.05 apiece while Piramal Enterprises was up by 0.82% at ₹1,902.70 in the pre-close session on BSE.
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