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HomeEconomyRBI takes control of troubled Dewan Housing board, appoints administrator

RBI takes control of troubled Dewan Housing board, appoints administrator

The govt last week empowered the RBI to refer stressed NBFCs and HFCs with assets worth at least Rs 500 crore, such as the DHFL, to insolvency court.

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Mumbai: The Reserve Bank Wednesday superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments.

The central bank has also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third largest pureplay mortgage lender.

The announcement comes after the government last week empowered the RBI to refer stressed NBFCs and HFCs having assets worth of at least Rs 500 crore to insolvency court.

“The Reserve Bank has today superseded the board of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations,” RBI said in a statement.

It further said shortly initiate the process of resolution of the company under the bankruptcy code, 2019 and would also apply to the NCLT for appointing the administrator as the resolution professional.


Also read: RBI Governor Shaktikanta Das is facing an increasingly tough balancing act


 

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1 COMMENT

  1. This reminds me of the Mustang ranch, a brothel, run by a private company in the State if Nevada. Believe t or not, it wnt broke and owed taxes, the stock in the New York stock exchange went broke. Govt Income tax took over the company took over and ran the brothel for a perion until it was closed or bought by another party. India has its own type of brothel screwing the public.

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