NCLT Admits RBI Plea Seeking Bankruptcy Resolution For DHFL
DHFL signage on a building. (Source: BloombergQuint)

NCLT Admits RBI Plea Seeking Bankruptcy Resolution For DHFL

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The Mumbai bench of the National Company Law Tribunal on Monday admitted petition by the Reserve Bank of India seeking bankruptcy proceedings to resolve the credit and liquidity crisis of mortgage player Dewan Housing Finance Corporation Ltd.

The move came in after the Reserve Bank last Friday made an application for bankruptcy proceedings to resolve the credit and liquidity crisis at the company, which became the first financial sector player being sent for bankruptcy.

Admitting the petition, an NCLT bench said, “the petition deserves admission”.

The third largest pure-play mortgage player has been in liquidity crisis for long and on Nov. 20 the RBI had superseded its board and placed under an administrator.

Following this, the RBI had last Friday issued a statement that it would be sent to NCLT for debt resolution.

Also read: RBI Files For Insolvency Proceedings Against DHFL

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