Sections

Home / Business News / Due to governance concerns, RBI supersedes board of DHFL

Due to governance concerns, RBI supersedes board of DHFL

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.

Updated: Nov 20, 2019 19:09 IST

By Press Trust of India, Mumbai

The Reserve Bank has today superseded the board of DHFL owing to governance concerns. (REUTERS Photo)

The Reserve Bank on Wednesday superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments.

The central bank has also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third largest pureplay mortgage lender.

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.

“The Reserve Bank has today superseded the board of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations,” RBI said in a statement.



It further said shortly initiate the process of resolution of the company under the bankruptcy code, 2019 and would also apply to the NCLT for appointing the administrator as the resolution professional.

tags

SCROLL FOR MORE NEWS
This site uses cookies

This site and its partners use technology such as cookies to personalize content and ads and analyse traffic. By using this site you agree to its privacy policy. You can change your mind and revisit your choices at anytime in future.