RBI to initiate insolvency process against DHFL

The Reserve Bank of India (RBI) will shortly initiate the process of resolution of Dewan Housing Finance Corporation (DHFL) under the Insolvency and Bankruptcy Code 2016 (IBC), the bank said in a press release. The central bank has superseded the board of directors of DHFL owing to governance concerns and defaults by the company in meeting various payment obligations. R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank has been appointed as the administrator under Section 45-IE (2) of the Act. RBI would also apply to the NCLT for appointing the administrator as the Insolvency Resolution Professional (IRP). DHFL owes aboout Rs 1 lakh crore to its debtors, which include banks and mutual funds. DHFL's troubles began in September 2018 with the collapse of IL&FS. Since then, Edelweiss, Reliance MF and other have moved the Bombay High Court to recover their dues.