Ahead of bankruptcy process, RBI puts DHFL under administrator

Ahead of bankruptcy process, RBI puts DHFL under administrator

MUMBAI: The Reserve Financial institution of India (RBI) on Wednesday outdated the board of the

troubled Dewan Housing Finance Company (DHFL)
because of governance issues and defaults on varied debt devices.

The central financial institution has additionally appointed R Subramaniakumar, the ex-managing director of Indian Abroad Financial institution because the administrator of the third largest pureplay mortgage lender.

The announcement comes after authorities final week

empowered the RBI to refer confused NBFCs
and HFCs having property value of a minimum of Rs 500 crore to insolvency court docket.

“The Reserve Financial institution has at this time outdated the board of DHFL owing to governance issues and defaults by DHFL in assembly varied cost obligations,” RBI mentioned in a press release.

It additional mentioned that it’ll shortly provoke the method of decision of the corporate beneath the chapter code, 2019 and would additionally apply to the NCLT for appointing the administrator because the decision skilled.

Source link

Leave a Reply