November 29, 2019

Reserve Bank Of India Files Plea Before National Company Law Tribunal Seeking Insolvency Process Against DHFL

[ By Bobby Anthony ]


The Reserve Bank of India (RBI) has filed an application in the National Company Law Tribunal's Mumbai bench for initiation of corporate insolvency resolution process against the cash-strapped Dewan Housing Finance Corporation Ltd (DHFL).

There would be a debt moratorium on DHFL as long as the insolvency process undergoes, according to a recent RBI statement.

The RBI had filed the application to initiate corporate insolvency resolution process against DHFL under several clauses of Section 227 and Section 239 of the Insolvency and Bankruptcy Code, 2016 along with few rules under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, according to the RBI statement.

The move comes a week after the RBI appointed an advisory committee to advise the administrator of the private sector DHFL.

It may be recalled that on November 20, the RBI had superseded DHFL's board of directors and appointed R Subramaniakumar as its administrator.

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