The approval comes after the NCLAT on May 25 stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan.

DHFL insolvency NCLT approves Piramal Groups resolution planPicxy.com /lakshmiprasad
Money Law Monday, June 07, 2021 - 15:45

The National Company Law Tribunal (NCLT) has approved the resolution plan of Piramal Capital & Housing Finance Ltd for Dewan Housing Finance Corporation Ltd (DHFL). Piramal Capital & Housing Finance Ltd is a wholly owned subsidiary of Piramal Enterprises. In a regulatory filing, Piramal Enterprises said: "National Company Law Tribunal, Mumbai Bench (NCLT), has today accorded its approval to the resolution plan of PCHFL in relation to the CIRP of DHFL. The certified copy of the order of the NCLT is awaited."

The approval comes after the National Company Law Appellate Tribunal (NCLAT) on May 25 stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan. Piramal Group turned out to the successful bidder for the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) in January, but in a strange turn of events, the Mumbai-bench of NCLT on May 19 asked the lenders of the bankrupt DHFL to consider the settlement offer of former promoter Kapil Wadhawan. 

Wadhawan had filed a petition at the NCLT, and the order was reserved since January 15. He offered to repay 100 per cent principal amount to all the creditors. In his revised proposal of Rs 91,158 crore for the creditors, Wadhawan promised to make an upfront payment of Rs 9,000 crore.

In a statement, Piramal Group said: "We are pleased with the judgment today by the NCLT for approving our resolution plan for DHFL. This follows the endorsement of 94 per cent of lenders, and the subsequent approvals from RBI and CCI, and reiterates the strength and quality of our bid."

Noting that, it is one of India's largest IBC proceedings, and the first in the financial sector, it said that the resolution is an important and a positive trendsetter for the future. "We are committed to collaborating with all relevant authorities, regulators, creditors and investors involved in this resolution and look forward to a speedy culmination of the resolution process," the group said.

Shares of Piramal Enterprises soared after the approval. Around 2 pm, its shares on the BSE were at Rs 1,996.30, higher by Rs 71.60 or 3.72% from its previous close. DHFL shares surged and hit the 10% upper circuit to touch Rs 20.80 per share.

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