Lenders await fate of Piramal, 63 Moons Tech litigation in top court





Even as the Central Bureau of Investigation (CBI) intensified its probe against the former promoters of Dewan Housing Finance Limited (DHFL), its lenders are keenly awaiting the fate of an appeal filed by & Housing Finance against and 63 Moons Technologies with regard to Rs 40,000 crore worth of assets of the firm’s fraud accounts.


Piramal had appealed against the National Company Law Appellate Tribunal (NCLAT) order directing DHFL’s lenders to reconsider their decision on the valuation of the financial firm’s fraud accounts.


“It’s not only and its lenders. The fate of future bankruptcy cases and recovery will also depend on the outcome of the Supreme Court’s (SC’s) final order,” said a source close to the development.


According to the debt resolution plan, was handed over the company’s control by the lenders. But 63 Moons Technologies, which had a Rs 200-crore exposure to DHFL, had filed a petition in the NCLAT against the debt resolution plan of Piramal Capital, which ascribed a value of Rs 1 to Rs 40,000 crore worth of assets of DHFL’s fraud accounts.


Any recovery in future from these accounts will accrue to Piramal and not to the lenders, according to the petition filed in the apex court by 63 Moons.


In January this year, NCLAT had ordered the petition be considered by the Committee of Creditors (CoC). But this order was stayed by the SC in April, and the matter is pending at present.


Following the registration of a fresh case on Monday, the CBI officials on Wednesday carried out searches at 12 premises of real estate in Mumbai. The central agency booked DHFL, its former chairman Kapil Wadhawan, director Dheeraj Wadhawan and others for the bank fraud following a complaint from Union Bank of India. Both are already incarcerated in earlier cases.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Comments are closed.