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On Wednesday, the Reserve Bank of India superseded the Board of Directors of the Dewan Housing Finance Corporation Limited (HDFL) citing governance concerns.
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On Wednesday, Reserve Bank of India (RBI) superseded Board of Directors of Dewan Housing Finance Corporation Limited (HDFL). It cited governance concerns and default by DHFL in meeting various payment obligations. ex-Managing Director and CEO of Indian Overseas Bank, R Subramaniakumar has been appointed as administrator. RBI will soon initiate process of resolution of company under Insolvency and Bankruptcy Rules, 2019. It would also apply to NCLT for appointing administrator as Insolvency Resolution Professional.
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Here is RBI's official statement:
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 tune of Rs.2,186 crores. This has also been ackwledged by investigative ncies. Republic TV accessed certain company documents which indicated that NBFC in question could be DHFL. ncies too suspect that this loan received by Sunblink could be proceeds of crime which perhaps may have been used in terror activities.
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ED conducts raids
Following this investigation, Enforcement Directorate (ED) carried out searches at DHFL office in Mumbai. Kapil Wadhawan, a promoter of DHFL also joined probe and handed over certain documents to ncy. After him, his bror Dheeraj Wadhawan, who is also a promoter of DHFl appeared before ED. On day, when ncy carried out searches at DHFL office in Mumbai, Dheeraj Wadhawan got himself admitted to Kokilaben Hospital in Mumbai. Subsequently, Wadhawans received a jolt from Bombay High Court as it restrained m from travelling abroad. court's direction came on a plea by 63 Moons Techlogies, to whom DHFL owes around Rs.200 crore.
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18:35 IST, November 20th 2019