RBI refers DHFL to bankruptcy tribunal for resolution of company's Rs 83,873 cr debt

Mumbai: The Reserve Bank on Friday sent the crippled Dewan Housing Finance Corporation (DHFL) to the bankruptcy tribunal, making it the first NBFC/HFC to be resolved under the insolvency and bankruptcy code. The central bank also said there will an interim moratorium on the lender between the date of filing of the bankruptcy application and its admission or rejection.

#JustIn | CNBC-TV18 newsbreak confirmed, RBI files plea to start insolvency process against DHFL pic.twitter.com/M42dWXsano

— CNBC-TV18 (@CNBCTV18Live) November 29, 2019

The city-headquartered pureplay mortgage lender becomes the first NBFC/HFC to go for bankruptcy resolution. As of July 2019, the home financier owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders. Of this, secured debt is Rs 74,054 crore and Rs 9,818 crore is unsecured. The Reserve Bank on 20 November had superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments. The central bank had also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third-largest pureplay mortgage lender. (With PTI inputs)