A referral to the NCLT, which will happen after the RBI informs the government and a notification is issued, will help ease DHFL’s troubles that began in September 2018 with the credit crunch caused by the collapse of IL&FS.
MUMBAI: Lenders are likely to ask the Reserve Bank of India to refer Dewan Housing Finance Corp Ltd (DHFL) to the National Company Law Tribunal (NCLT) after rules were changed last week to bring nonbanking financial companies within the ambit of the bankruptcy code. The referral, which will happen after the RBI informs the government and a notification is
investor for DHFL. The committee of creditors that will oversee the process will have 180 days to draw up a resolution plan. If the CoC fails to formulate a plan within 180 days, lenders will have to make additional provision of 20%. The provisioning would rise to 35% if the matter remains unresolved for up to 365 days.