The Reserve Bank of India (RBI) superseded the board of debt-laden Dewan Housing Financial Corporation Limited (DHFL) over defaults and informed that it will soon initiate the process of resolution of the company under the insolvency and bankruptcy rules.
The central bank mentioned in a statement that it superseded the Board of Directors of ailing DHFL over governance concerns and failure to pay existing debts.
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“The Reserve Bank has today superseded the Board of Directors of Dewan Housing Finance Corporation Limited (DHFL) owing to governance concerns and defaults by DHFL in meeting various payment obligations,” RBI said in a statement.
RBI also said that R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank (IOB) has been appointed as the administrator under Section 45-IE (2) of the Act.
“The Reserve Bank also intends to shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional,” it added.
DHFL has been under immense financial pressure and is one of the country’s top defaulters with pending dues valued at almost Rs 1 lakh crore, as per reports.