RBI supersedes DHFL Board on governance issues, fee defaults; will provoke chapter course of

Mumbai: The Reserve Financial institution on Wednesday outmoded the board of the troubled Dewan Housing Finance Company (DHFL) as a consequence of governance issues and defaults on varied debt devices.

The central financial institution has additionally appointed R Subramaniakumar, the ex-managing director of Indian Abroad Financial institution because the administrator of the third-largest pureplay mortgage lender.

CNBC-TV18 newsbreak confirmed, RBI says outmoded the Board of Administrators of DHFL in train of powers beneath Part 45-IE(I) of RBI Act pic.twitter.com/5R4m2biNVh

— CNBC-TV18 (@CNBCTV18Stay) November 20, 2019

The announcement comes after the federal government final week empowered the RBI to refer pressured NBFCs and HFCs having belongings price of at the very least Rs 500 crore to insolvency court docket.

“The Reserve Bank has today superseded the board of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations,” RBI stated in a press release.

It additional stated shortly provoke the method of decision of the corporate beneath the chapter code, 2019 and would additionally apply to the NCLT for appointing the administrator because the decision skilled.

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