Trilegal Represented DHFL In INR 5,050 Crore Case As Mumbai Court Discharged The Company Of Money Laundering Charges
Trilegal represented DHFL as Mumbai Special PMLA Court discharged the company in INR 5,050 crore money laundering case.
Trilegal represented DHFL in INR 5,050 crore case as Mumbai Court discharged the company of money laundering charges
Trilegal, the leading law firm in India, represented Dewan Housing Finance Corporation Limited (DHFL) in a significant money laundering case before the Special PMLA Court, Mumbai. The court discharged DHFL—now known as Piramal Finance Limited—from proceedings in a ₹5,050 crore money laundering case linked to Yes Bank.
DHFL was represented by the Trilegal Dispute Practice team led by Partners Ashwyn Misra and Chitra Rentala, and supported by Senior Associate Parikshith Kezhkekara and Associate Priyanka Vishnoi.
Special court grants immunity under insolvency law, allowing new management to start on a “clean slate”
The Special PMLA Court, Mumbai passed the order on 02 February 2026, granting DHFL, now operating as Piramal Finance Limited, statutory immunity under the Insolvency and Bankruptcy Code, 2016 (IBC). Applying the clean slate doctrine, the Court observed that following DHFL’s acquisition by the Piramal Group through the Corporate Insolvency Resolution Process (CIRP), the new management deserves to “make a clean break with the past and start on a clean slate.”
Background of allegations
The Enforcement Directorate (ED) had alleged that DHFL, working alongside Yes Bank’s former MD and CEO Rana Kapoor, participated in a criminal conspiracy involving proceeds of crime worth ₹5,050 crores – of which ₹4,450 crores had allegedly flowed to DHFL.
CIRP and change in management
However, as DHFL defaulted on its payment obligations to various stakeholders, the Reserve Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against DHFL in November 2019. The Piramal Group’s resolution plan received approval from the National Company Law Tribunal, Mumbai (NCLT) in June 2021, resulting in complete overhaul of the management.
DHFL was also rebranded as Piramal Capital and Housing Finance Limited (now Piramal Finance Limited) in September 2021. The Supreme Court upheld the decision of the NCLT on the resolution plan in April 2025.
Court’s reasoning on immunity
DHFL’s new management applied for discharge, invoking protections under the IBC. The Court found that two critical conditions for immunity under Section 32A were satisfied:
Approval of a resolution plan
Complete management change to parties unrelated to the former promoters
The Court noted that Section 32A, introduced in 2020, represents a “later enactment” and therefore overrides provisions of the Prevention of Money-Laundering Act, 2002 (PMLA). The Court also referenced the Bombay High Court’s earlier discharge of DHFL in a related CBI case on 16 November 2021, on identical grounds.
Liability of former management continues
While DHFL in its new avatar has been granted immunity, the Court emphasized that protection does not extend to individuals. The order clearly states that:
“The erstwhile officers/directors of the corporate debtor... shall continue to be prosecuted and punished for such an offence committed by the corporate debtor.”
Legal Representation
Advocate Karan Kadam, briefed by the disputes team from Trilegal led by Ashwyn Misra and Chitra Rentala, along with Senior Associate Parikshith Kezhkekara and Associate Priyanka Vishnoi, appeared for DHFL.
Special Public Prosecutor Sunil Gonsalves appeared for the Enforcement Directorate.
Conclusion
This landmark judgment reinforces the clean slate doctrine under the Insolvency and Bankruptcy Code. It confirms that successful resolution applicants should not inherit criminal liabilities of previous management, thereby ensuring that insolvency resolution remains an effective and attractive avenue for corporate revival. The ruling brings further clarity on the overriding effect of Section 32A of the IBC over PMLA provisions and strengthens confidence among potential investors and acquirers in distressed assets.
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