The National Company Law Tribunal (NCLT) on Monday approved the resolution plan of Piramal Group for bankrupt Dewan Housing Finance Ltd (DHFL).
In January, Piramal Capital and Housing Finance Ltd, a subsidiary of Piramal Enterprises Limited, had won the bid for acquiring DHFL. The resolution plan had received approvals from RBI in February 2021 and Competition Commission of India (CCI) in April 2021.
The Mumbai bench of NCLT, chaired by H P Chaturvedi and Ravikumar Duraisamy, said the approval for Piramal Group's offer is subject to final judgement from the National Company Law Appellate Tribunal (NCLAT) and Supreme Court's judgement on former DHFL promoter Kapil Wadhawan in the matter.
The bench also asked Committee of Creditors (CoC) to consider giving more money to small fixed deposit holders under the approved resolution plan. "We are not remanding the plan back to CoC, we respect their commercial wisdom," it said.
It also rejected Wadhawan's plea to get access to a copy of the resolution plan.
On May 25, NCLAT had stayed an order passed by NCLT asking lenders of DHFL to consider the resolution plan of Wadhawan. Last year, Wadhawan had made his settlement offer to the CoC which was rejected due to lack of credibility and the valuations attached to the proposed asset sales. In the plan, Wadhawan had proposed to repay lenders by selling assets.
In November 2019, RBI had referred DHFL -- then the third-largest pure-play mortgage lender -- for resolution under the Insolvency and Bankruptcy Code (IBC).
DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds and individual investors who kept fixed deposits with the company.
(With PTI inputs)
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