63 moons reaches out to NCD, FD holders of DHFL in fight to get ₹30,000 crore

Our Bureau Mumbai | Updated on January 08, 2021

63 moons technologies has invited non-convertible debentures holders and fixed deposit holders of Dewan Housing Finance Corporation Ltd (DHFL) to join with them in the National Company Law Tribunal (NCLT) Mumbaiby filing separate applications for recovery from fraudulent transactions.

“...otherwise, NCD and FD holders have to face huge haircuts, approximately of ₹50,000 crore, in the current insolvency process. The promoters of DHFL have siphoned off approximately ₹30,000 crore, which has been traced by the Grant Thornton forensic audit report itself,” said 63 moons technologies in a statement on Friday.

63 moons, which holds over ₹200crore NCD of DHFL, had last week moved the NCLT seeking that recovery from the debt-ridden housing finance company is distributed amongall creditors.

Resolution plans

The NCLT has adjourned the matter to January 13, 2021, for final hearing.

“63 moons has argued that applications for recovery under Section 66 are meant for the benefit of the defrauded parties, that is the creditors and cannot be whittled away by the buyers (resolution applicants),” it said. It further said that the current resolution plans for DHFL are in violation of the IBC and is disappointing for NCD and FD holders as they will bear the biggest loss, compared to other creditors.

“Other members of the creditors, comprising banks mainly, have recourse to personal guarantees of promoters, whereas NCD holders do not have any such contractual recourse,” it said, adding that NCD holders will be left high and dry with a massive 65 per cent to 75 per cent haircut (₹50,000 to 60,000 crore) if future recoveries from fraudulent transactions are allowed to pass to the buyers (resolution applicants), instead of the creditors.

“We want NCLT to rule that the recovery of siphoned-off money should go to creditors, which includes the banks as we all are the real sufferers and not the new buyers of the company,” it further said.

Published on January 08, 2021

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