Press "Enter" to skip to content

63 moons to challenge Piramal Group’s DHFL buy – Mint

63 moons technologies on Tuesday said it will challenge the order of the National Company Law Tribunal (NCLT), permitting Piramal Group to take over Dewan Housing Finance Corp Ltd (DHFL).

It said that the current resolution plan is contrary to law and against the interest of all DHFL’s creditors including non-convertible debenture holders (NCD) holders. The company holds over 200 crore worth NCDs in the mortgage lender.

“The administrator of DHFL has filed applications for recovery of almost 45,000 crore under Section 66 of the Insolvency and Bankruptcy Code (IBC) against DHFL’s promoters and other persons on account of their fraud against the creditors. Contention of 63 moons is that this amount of Rs. 45,000 crore must come to the defrauded parties, which are the creditors,” it said in a statement.

Founded by Jignesh Shah, 63 moons provides technology ventures, innovations, platforms, and solutions for creating digital markets and marketplaces, according to its website.

The resolution plan, 63 moons said, is drafted in such a way that it favours resolution applicant Piramal Group, allowing it to reap the benefits of recoveries from the promoters.

“Ascribing a value of Re 1 to the recoveries of fraud where claims are in excess of 45,000 crore creates unjust enrichment of the buyer (Piramal) at the cost of creditors. Piramal has bid only for the current value of DHFL which does not include these amounts that were taken away fraudulently. Hence, all the more reason, the recoveries must come to the creditors only,” the statement said.

On Monday, Piramal Capital and Housing Finance Ltd received a bankruptcy court’s approval to acquire DHFL for 37,250 crore.

63 moons said it had filed an application in the Mumbai NCLT seeking that the fraudulent transaction recovery benefit of approximately Rs. 45,000 crore should come to creditors, including NCD holders.

“Strangely, the current DHFL resolution plan allows the Piramal Group to buy the company by paying mere 37,500 crore as against the outstanding debt of 85,000 crore. Also, in addition to this, the benefits of claims of over 45,000 crore are to be appropriated by Piramal fully by ascribing the entire recoverable amount a value of Re 1,” it added.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
our App Now!!