RBI Supersedes DHFL Board, Resolution Process Under IBC Soon

Photo used for representational purposes.

(Photo: Reuters)

The Reserve Bank of India (RBI) on Wednesday, 20 November, superseded Dewan Housing Finance Corporation Ltd (DHFL)'s board, adding that it intends to refer the non-bank lender for resolution under the Insolvency and Bankruptcy Code (IBC).

In an official release, the central bank stated that the decision has been taken “owing to governance concerns and defaults by DHFL in meeting various payment obligations”.

R Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, has been appointed as DHFL's administrator for the time being, the release said.

The announcement comes after the government last week empowered the RBI to refer stressed NBFCs and HFCs having assets worth of at least Rs 500 crore to insolvency court.

(This is a developing story. More details awaited)