Reserve Bank of India, in a notification released on Nov 20 said that it has taken over the control of Dewan Housing Finance Company’s board and has appointed an administrator.
The statutory inspection of DHFL conducted by the National Housing Bank with reference to its position as on March 31, 2018 revealed serious deterioration in its financial position.
DHFL has defaulted in its payment obligations in respect of bank borrowings and market borrowings, which reveals serious concerns about the conduct of the affairs of the company.
R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank has been appointed as the administrator of DHFL.
The Reserve Bank also intends to shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy Code and would also apply to the NCLT for appointing the administrator as the Insolvency Resolution Professional.