In a huge relief for fixed deposit (FD) investors and non-convertible debenture (NCD)-holders of Dewan Housing Finance Corporation Ltd (DHFL), the repayment process has already started.
While many people have expressed their satisfaction at having received almost their full principal amount (those with invested amounts less than Rs2 lakh for NCDs) back, some were extremely disappointed and angry at having received only 23% to 46% of their principal amount back. Moneylife
has been closely covering the insolvency proceedings of DHFL since 2019 and it can be read here
Catalyst Trusteeship Ltd, the debenture trustee for the DHFL bonds, which has been severely criticised for its total lack of interest and communication during the entire resolution process, has finally uploaded the latest status report in the smartroom portal.
The report says that the process of implementation of the resolution plan approved by the National Company Law Tribunal (NCLT) as per its order on 7th June, has started. Catalyst Trusteeship has been appointed as the Global Escrow Trustee to hold on trust, the settlement amount in the form of cash and debentures issued by Piramal Capital Housing Finance Company Ltd (PCHFL) and to arrange for payments to claimants. The payments are being made as per the said resolution plan to the debenture-holders as on 13 August 2021 (record date) and the FD holders.
The settlement consideration payable to debenture-holders are aggregated permanent account number (PAN)-wise under each series. The amount payable by cash is being credited to the bank account (linked to the demat account) of the first-holder and those payable by way of debentures issued by PCHFL is being credited to the demat accounts of the first-holder, as appearing in the list of debenture-holders as on 13th August.
DHFL FD investors:
The amount payable to FD-holders is being credited to their bank accounts as per details made available by DHFL. However, in respect to those FD-holders, whose bank account details are not available with DHFL, are being paid by way of demand draft drawn on HDFC Bank Ltd and being sent to their registered address by speed post.
Meanwhile, the National Company Law Appellate Tribunal (NCLAT) has fixed the next date for the hearing of pending appeals, including those filed separately by FD-holders and Kapil Wadhawan (the erstwhile promoter of DHFL), on the resolution of DHFL to 17th November.
The appellate tribunal said all legal filing of documents should be completed by then. FD-holders have also filed an interim application with the Supreme Court.
Fresh cases of Uttar Pradesh State Power Sector Employees Trust and Uttar Pradesh Power Corporation Contributory Provident Fund Trust against DHFL were also taken up for admission by the appellate tribunal.
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