Wadhawan moves NCLT against CoC, Administrator

Our Bureau Updated - November 26, 2020 at 11:13 PM.

Says DHFL’s cash in hand, investment and real estate assets is more than ₹16,000 crore

DHFL’s erstwhile Director Kapil Wadhawan has moved the National Company Law Tribunal with a plea that it direct the housing finance company’s Administrator, the Committee of Creditors and the Reserve Bank of India to consider the draft resolution plan prepared by the company last year for its revival .

In the alternative to the above, Wadhawan (Applicant), who is currently in judicial custody, has sought the Tribunal’s direction that DHFL’s resolution plan be submitted to an independent expert appointed by the Tribunal along with the bids received from the other Resolution Applicants.

Further, he prayed that the expert be directed to submit a report giving opinion to the Tribunal with regard to the most appropriate plan to be considered in the interest of all stakeholders.

DHFL’s resources

The Applicant has also sought the Tribunal’s permission to address and assist the Committee of Creditors (CoC) “to appreciate and consider the bids being received for DHFL in the proper perspective and to permit him to assist in the CIRP (corporate insolvency resolution process) process”.

In his application to the Tribunal, Wadhawan alleged that with barely any investment, the bidders are seeking to take over DHFL using its own resources whilst offering a massive hair cut on the amounts due to various creditors, including lenders, NCD and FD holders, of the company.

The Applicant said DHFL’s cash in hand, investment and real estate assets is more than ₹16,000 crore. In the application, Wadhawan said he is given to understand that the upfront amounts of the bids is less than the aforesaid amount.

As per the application, DHFL even today has assets worth more than ₹68,000 crore, “even after giving discount to all allegations and without even considering the going concern value”.

The parties who have put in bids to acquire DHFL’s assets either fully or in partly include Oaktree, Piramal Capital & Housing Finance and Adani Properties.

Published on November 26, 2020 16:10