Piramal Resolution Plan for DHFL gets NCLT nod

Mumbai Bench of the National Company Law Tribunal (NCLT) approved Piramal Group’s resolution plan for the beleaguered Dewan Housing Finance Ltd (DHFL), which has been reeling from the insolvency process since 2019. The plan pu

BY Realty Plus
Published - Wednesday, 09 Jun, 2021

Piramal Resolution Plan for DHFL gets NCLT nod

Mumbai Bench of the National Company Law Tribunal (NCLT) approved Piramal Group’s resolution plan for the beleaguered Dewan Housing Finance Ltd (DHFL), which has been reeling from the insolvency process since 2019. The plan put forward by Piramal Group, which has offered to pay Rs 37,250 crore, has been approved by the committee of creditors (CoC), the Reserve Bank of India (RBI), and the Competition Commission of India (CCI). At NCLT level, the corporate insolvency resolution process is complete. While the bankruptcy tribunal has approved the overall plan, it has asked for reallocating funds to fixed-deposit holders and small investors. That said, it has not sent the plan back to the CoC; rather, it has said the final decision is left to the lenders. A statement from Piramal Group on NCLT Judgement said, “We are pleased with the judgment today by the Honorable NCLT for approving our resolution plan for DHFL. This follows the endorsement of 94% of lenders, and the subsequent approvals from RBI and CCI, and reiterates the strength and quality of our bid. This is one of India’s largest IBC proceedings, and the very first in the financial sector. In that regard, it is an important and positive trendsetter for the future. The approval from NCLT is a significant milestone in DHFL's resolution and an affirmation of the sanctity of the IBC process in India.We are committed to collaborating with all relevant authorities, regulators, creditors and investors involved in this resolution and look forward to a speedy culmination of the resolution process.”