The shares of Dewan Housing Finance Corporation (DHFL) were locked in a 5 percent upper circuit at Rs 19.80 on Friday, in an otherwise weak market, after the company received no objection from the central bank for the Piramal plan.
DHFL on Thursday said it has received no objection from the Reserve Bank and has filed an application with NCLT for submission of the resolution plan of Piramal Capital & Housing Finance. Earlier this week, DHFL had announced the Piramal group's resolution plan getting approval from the RBI.
"Pursuant to the receipt of no objection from Reserve Bank of India as per Insolvency and Bankruptcy Rules, 2019, the administrator of Dewan Housing Finance Corporation Limited (DHFL) has filed an application for submission of resolution plan of Piramal Capital & Housing Finance Limited (PCHFL) with the adjudicating authority NCLT, Mumbai Bench," DHFL said in a regulatory filing.
The resolution plan has been approved by the Committee of Creditors (CoC). In November 2019, the Reserve Bank had referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings. It was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC.
The company is being investigated by the Ministry of Corporate Affairs from December 2019 through the Serious Fraud Investigation Office (SFIO). The Enforcement Directorate is also probing the company in connection with loans given by it to certain borrowers.
For the December quarter, DHFL posted a consolidated net loss of Rs 13,095.38 crore in Q3 against a net profit of Rs 934.31 crore in the year-ago quarter.
