Money & Banking

Sasakawa-India case on DHFL: Delhi HC issues notices to RBI, Union of India, others

Mumbai | Updated on February 26, 2021

The Delhi High Court, on Thursday, issued notice to the Reserve Bank of India, Union of India and other respondents in the urgent application filed by Sasakawa-India Leprosy Foundation relating to Dewan Housing Finance Corporation Ltd.

The case will be heard on March 5, along with the main Writ Petition filed by the foundation.

Resolution plan

The urgent application, which came soon after the RBI approved the resolution plan by Piramal Group for DHFL, was taken up for hearing on Friday.

It has sought relief for setting aside the fixed deposit amount based on the same relief given to the National Housing Bank, and has sought that the funds should not be made part of the insolvency process.

Sasakawa-India Leprosy Foundation has over ₹8 crore stuck in fixed deposits of DHFL.

The FD holders of DHFL have been opposing the resolution plan as many of them would only back a get negligible amount of their investments. According to the plan, FD holders of up to ₹2 lakh will get their entire money back. But of those above ₹2 lakh, only 25 per cent of the money due will be paid.

A host of petitions filed by fixed deposit holders of DHFL for full repayment of their investments are set to be heard by the courts in the coming weeks, even as the resolution process of the housing finance company is at the final stages.

Meanwhile, the Administrator of Dewan Housing Finance Corporation Limited, has filed an application for submission of resolution plan of Piramal Capital and Housing Finance Limited, which was approved by the Committee of Creditors with the National Company Law Tribunal (NCLT), Mumbai Bench. This was filed on February 24.

The National Company Law Tribunal, Mumbai Bench, has also clubbed all petitions pending for dues in the DHFL resolution plan and has listed it for March 15.

“All petitions have been tagged together and will be considered as objection to the resolution plan,” said Vinay Kumar Mittal, a lead petitioner in the court on behalf of the FD holders of DHFL.

Three separate petitions by Mittal, Army Group Insurance Fund, Uttar Pradesh State Power Sector Employees Trust and Board of Trustees of Uttar Pradesh Power Corporation Contributory Provident Fund Trust were listed for hearing before the NCLT, Mumbai, on February 25 on DHFL resolution plan.

DHFL scrip closed 4.76 per cent higher on BSE on Friday at ₹19.8 apiece.

Published on February 26, 2021

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