RBI help sought by UPPCL to recover frozen DHFL Funds

The UP Power Corporation Limited (UPPCL) approached the central bank of the country – Reserve Bank of India (RBI) to help recover Rs. 2,268 crore trapped with the tainted firm, Dewan Housing Finance Corporation Limited (DHFL), following a freeze order by Bombay High Court. The UPPCL has also hired a legal firm to file a review petition in Bombay High Court to release the funds.

Former UPPCL chairman Alok Kumar has requested the RBI (in a letter to RBI Chief General Manager Ashok Narain) to help get back the money with interest with RBI being the regulator of National Housing Bank, which in turn monitors housing finance companies. Kumar informed the RBI that the UP Power Sector Employees Trust made substantial investments in DHFL, but the money was blocked following a court order.

Kumar informed RBI the UP Power Sector Employees Trust made substantial investments in DHFL, but the money was blocked following a court order. The corporation constituted an inquiry and has taken stringent action against guilty officials, the letter stated.

UPPCL has approached the RBI after UP power minister Srikant Sharma wrote to Chief Minister Yogi Adityanath, seeking a CBI probe into the role of UPPCL chairman, who is also chairman of the trust that invested money in DHFL. The UP state government recommended a CBI investigation and the issue has gained political traction with the Opposition accusing the state government of siphoning off the hard earned money of nearly 45,000 employees.

UPPCL’s fresh move comes days after the Economic Offences Wing arrested the former UPPCL Managing Director AP Mishra, Trust Secretary PK Gupta and former Director (Finance) Sudhanshu Dwivedi. It is understood that the UP state government is exploring all options to ensure the money is released.