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DHFL lenders consider adjusting loans against FDs: Report

In 2019, DHFL became the first non-banking financial company (NBFC) to be taken to the bankruptcy court.

March 16, 2020 / 10:15 AM IST
 
 
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Lenders of Dewan Housing Finance (DHFL) are exploring the option of adjusting the fixed deposits of its customers against loans outstanding, according to a Mint report.

Some depositors approached the housing financier’s administrator R Subramaniakumar and asked for an adjustment, the report said. Such adjustments will not hurt the insolvency resolution process, a source told the paper.

The loans granted against FDs are not very large, the report added. Most depositors will be unaffected since they have not borrowed against FDs.

Moneycontrol could not independently verify the story.

“Some depositors have approached the administrator asking for the adjustment but it is unclear how it can be done during the corporate insolvency resolution process. As these depositors are not able to withdraw their money but have to keep repaying loans, they have sought this," a source told Mint.

The DHFL administrator has sought legal advice from AZB and Partners, the report added.

FD holders had moved the Mumbai bench of the National Company Law Tribunal (NCLT) and demanded repayment of their dues, after the Supreme Court rejected their petition.

In 2019, DHFL became the first non-banking financial company (NBFC) to be taken to the bankruptcy court.

Moneycontrol News
Tags: #DHFL
first published: Mar 16, 2020 10:15 am

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