{"id":1410,"date":"2019-11-20T05:22:06","date_gmt":"2019-11-20T05:22:06","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/11\/20\/dhfl-headed-for-nclt-as-banks-seek-rbi-intervention\/"},"modified":"2019-11-20T05:22:06","modified_gmt":"2019-11-20T05:22:06","slug":"dhfl-headed-for-nclt-as-banks-seek-rbi-intervention","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/11\/20\/dhfl-headed-for-nclt-as-banks-seek-rbi-intervention\/","title":{"rendered":"DHFL headed for NCLT as banks seek RBI intervention"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1754454 size-full\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/11\/dhfl.jpg\" alt=\"Bank, DHFL asset,\u00a0DHFL ,\u00a0Dewan Housing Finance Corporation,\u00a0Insolvency and Bankruptcy Code, IBC,\u00a0DHFL news,\u00a0DHFL\u00a0 share,\u00a0IRDA , nclt,\u00a0RBI\u00a0\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/dhfl.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"wp-image-1754454 size-full\" src=\"https:\/\/images.financialexpress.com\/2019\/11\/dhfl.jpg\" alt=\"Bank, DHFL asset,\u00a0DHFL ,\u00a0Dewan Housing Finance Corporation,\u00a0Insolvency and Bankruptcy Code, IBC,\u00a0DHFL news,\u00a0DHFL\u00a0 share,\u00a0IRDA , nclt,\u00a0RBI\u00a0\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/dhfl.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/dhfl-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">There are two separate cases in the Bombay High Court and an ongoing hearing at the Debt Recovery Tribunal (DRT) in Pune against DHFL.<\/span><\/figure>\n<\/div>\n<p><em><strong>By\u00a0Ankur Mishra \u00a0<\/strong><\/em><\/p>\n<p>Dewan Housing Finance Corp (DHFL) could soon be referred to the Mumbai bench of the National Company Law Tribunal (NCLT), since banks are unlikely to come up with a solution for the troubled mortgage lender. The rules under Section 227 under the Insolvency and Bankruptcy Code (IBC) relating to the insolvency and liquidation proceedings of financial service providers (FSPs) were notified on November 18. These rules require the Reserve Bank of India (<a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) to initiate insolvency proceedings against financial services companies if they feel it is necessary.<\/p>\n<p>\u201cThe banks approached RBI and asked the central bank to refer DHFL to NCLT after the framework for Section 227 of the IBC was announced last Friday,\u201d a senior banker said. \u201cAlthough it is up to the regulator to decide on referring cases to NCLT, banks have presented their case to RBI,\u201d he added.<\/p>\n<p>In light of the findings of forensic audit report, banks have turned more wary about going ahead with the proposed resolution plan. The draft forensic audit report from KPMG suggests that funds could have been diverted by DHFL, and the Serious Fraud Investigation Office (SFIO) is carrying on a parallel investigation. A senior PSU banker told FE on the condition of anonymity that court-monitored resolution proceedings would be a better way of resolving DHFL, as there are multiple litigations involved now.<\/p>\n<p><strong>Read| <a href=\"https:\/\/www.financialexpress.com\/industry\/banks-may-move-courts-to-preserve-dhfl-assets\/1769559\/\" target=\"_blank\" rel=\"noopener\">Banks may move courts to preserve DHFL assets\u00a0<\/a><\/strong><\/p>\n<p>There are two separate cases in the Bombay High Court and an ongoing hearing at the Debt Recovery Tribunal (DRT) in Pune against DHFL. Edelweiss AMC, Kotak <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/auto\/new-cars\/mahindra\/\" rel=\"noopener noreferrer\">Mahindra<\/a> AMC, Axis Asset Management and Reliance AMC had moved the Bombay High Court seeking a direction to DHFL to disclose all its assets and liabilities and also to temporarily prevent it from making payments\/disbursements to secured and unsecured creditors. In another case, 63 Moons had moved the Bombay HC seeking repayment of over Rs 200 crore by DHFL.<\/p>\n<p>The banks have started classifying DHFL as a non-performing asset (NPA). Union Bank of India and UCO Bank have already classified the loan as NPA in the September quarter this year, while other lenders are also likely to follow the suit. FE reported earlier that State Bank of India (SBI), Bank of Baroda (BoB) and Union Bank of India are understood to be among those contemplating the move to classify exposure to DHFL as a fraud account.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] There are two separate cases in the Bombay High Court and an ongoing hearing at the Debt Recovery Tribunal (DRT) in Pune against DHFL. By\u00a0Ankur Mishra \u00a0 Dewan Housing Finance Corp (DHFL) could soon be referred to the Mumbai bench of the National Company Law Tribunal (NCLT), since banks are unlikely to come up [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1410"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1410\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1411"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}