Piramal group gets RBI nod for DHFL acquisition

Piramal Group on Thursday said the Reserve Bank is understood to have approved acquisition of debtridden DHFL by the group's subsidiary as part of resolution process.

The Committee of Creditors (CoC) had approved a resolution plan submitted by a Piramal Group company, Piramal Capital and Housing Finance Limited, last month.

"We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC," Piramal Group said in a statement.

The resolution plan was approved by the CoC in its 18th meeting concluded on January 15, 2021. Piramal Group and the US-based

Oaktree Capital submitted their bids in the fifth and final round. Suitors submitted bids in the range of Rs 35,000-37,000 crore.

Last week, DHFL posted a consolidated net loss of Rs 13,095.38 crore for the third quarter ended December 2020 against a net profit of Rs 934.31 crore in the yearago quarter. Sequentially, the company witnessed widening of net loss from Rs 2,122.65 crore in the second quarter ended September 2020.

In November 2019, the Reserve Bank referred Dewan Housing Finance Ltd (DHFL), the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

DHFL was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC. Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator.

He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).

The company is being investigated by the Ministry of Corporate Affairs from December 2019 through the Serious Fraud Investigation Office (SFIO).