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Published 19:14 IST, November 20th 2019

MASSIVE: RBI supersedes DHFL's Board, appoints administrator for insolvency proceedings

On Wednesday, the Reserve Bank of India superseded the Board of Directors of the Dewan Housing Finance Corporation Limited (HDFL) citing governance concerns.

Reported by: Akhil Oka
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On Wednesday, the Reserve Bank of India (RBI) superseded the Board of Directors of the Dewan Housing Finance Corporation Limited (HDFL). It cited governance concerns and default by DHFL in meeting various payment obligations. The ex-Managing Director and CEO of the Indian Overseas Bank, R Subramaniakumar has been appointed as the administrator. The RBI will soon initiate the process of resolution of the company under the Insolvency and Bankruptcy Rules, 2019. It would also apply to the NCLT for appointing the administrator as the Insolvency Resolution Professional.

Read: PMC Bank Scam: RBI Extends Withdrawals To Rs 50,000; Protest Continues

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Here is the RBI's official statement:

Read: Enforcement Directorate Questions Dheeraj Wadhawan Of DHFL

Republic TV investigation

Republic TV’s investigation raised some uncomfortable questions about DHFL’s role. Investigation revealed that a company called Sunblink Real Estate Private Ltd, which was involved in developing properties in Mumbai for Dawood Ibrahim’s right-hand man Iqbal Mirchi, received loans from an NBFC to the tune of Rs.2,186 crores. This has also been acknowledged by the investigative agencies. Republic TV accessed certain company documents which indicated that the NBFC in question could be DHFL. The agencies too suspect that this loan received by Sunblink could be the proceeds of crime which perhaps may have been used in terror activities.

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Read: AgustaWestland Case: Enforcement Directorate Moves Non-Bailable Warrant Plea In Court Against Ratul Puri After He Goes Missing

ED conducts raids

Following this investigation, the Enforcement Directorate (ED) carried out searches at the DHFL office in Mumbai. Kapil Wadhawan, a promoter of DHFL also joined the probe and handed over certain documents to the agency. After him, his brother Dheeraj Wadhawan, who is also a promoter of the DHFl appeared before the ED. On the day, when the agency carried out searches at the DHFL office in Mumbai, Dheeraj Wadhawan got himself admitted to Kokilaben Hospital in Mumbai. Subsequently, the Wadhawans received a jolt from the Bombay High Court as it restrained them from travelling abroad. The court's direction came on a plea by 63 Moons Technologies, to whom DHFL owes around Rs.200 crore. 

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Read: RBI Files Detalied Affadavit On The PMC Bank Scam In The Bombay High Court

18:35 IST, November 20th 2019