RBI Submits Application In NCLT To Initiate Insolvency Proceedings Against Debt-Laden DHFLRepresentative image (Twitter/@TimesDemocracy)

The RBI on Friday (29 November) filed an application in the National Company Law Tribunal's Mumbai bench for initiation of corporate insolvency resolution process against the cash-strapped Dewan Housing Finance Corporation Ltd (DHFL).

There would be a debt moratorium on DHFL as long as the insolvency process undergoes, an Reserve Bank of India (RBI) statement said.

The apex bank filed the application for initiation of corporate insolvency resolution process against DHFL under several clauses of Section 227 and Section 239 of the Insolvency and Bankruptcy Code, 2016 along with few rules under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, according to the statement.

The move comes a week after the RBI appointed an advisory committee to advise the administrator of the private sector DHFL. On November 20, it had superseded DHFL's board of directors and appointed R Subramaniakumar as its administrator.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement