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lending institution, had extended refinance to DHFL towards flagged pool of individual
housing loans. Despite the prevailing issues within DHFL, the existence of pool of assets
flagged to NHB are being certified by the Company’s Statutory Auditor/s as well as its
CFO,by way of adverse balance certificate which has last received for the position as on
December 31, 2020. The refinance extended by the Bank is governed by Section 16B of
the National Housing Act (NHB), 1987. Till date, there has no instance of fraud reported
in the pool of assets flagged to NHB.
Since default was continues and no repayment was forthcoming, the entire refinance
outstanding was recalled by NHB on November 20, 2019. At the instance of the
appropriate regulator (RBI), Corporate Insolvency Resolution Process (CIRP) was
initiated against DHFL under Insolvency and Bankruptcy Code, 2016 (IBC). By Order
dated December 03, 2019, which is also termed as date of commencement of CIR Process,
NCLT appointed an Administrator for overseeing the CIR Process of DHFL.
NHB’s Claim against the DHFL for`2436.67 Crore has been filed with the Administrator/
Interim Resolution Professional for DHFL. Due to COVID pandemic and the resultant
lockdown, there was delay in the CIR process. Finally, under CIR Process, the
Administrator put all the Resolution Plans for voting by Committee of Creditors (COC),
wherein the resolution plan submitted byPiramal Capital & Housing Finance Limitedgot
highest vote from COC. Accordingly, the Administrator filed application before NCLT
for final approval of resolution plan, which is pending.
In addition to the above, NHB has also filed recovery case in DRT against Wadhawan
Global Capital Ltd. (WGCL) for recovery of the amount due under the corporate
guarantee.
As per the adverse balance certificate received from the Company for position as on
December 31, 2020, the outstanding flagged loans was`1733.64crore and the adverse
balance was`745.18 crore. In terms of Section 16B of National Housing Bank Act, 1987,
NHB has also written letters to Administrator of DHFL to remit the amount realized
and held by it in trust for NHB, from the flagged loan accounts against which refinance
have been availed. Since, the Administrator refused to pay the amount held by DHFL
in trust, NHB filed a Interlocutory Application (IA) before the NCLT, Mumbai Bench
on July 29, 2020 claiming payment of the amount received and/or to be received by
DHFL in the flagged loan accounts and also prayed that any resolution plan that may
be finalized/approved of DHFL, it should be subject to the statutory rights of the NHB
under section 16B of NHB Act. On 07.06.2021, the Hon’ble adjudicating Authority
allowed the application in favour of NHB and made the interim arrangement arrived
between NHB and Committee of Creditors as absolute. The Committee of Creditor has
Annual Report 2020-21 | 311
housing loans. Despite the prevailing issues within DHFL, the existence of pool of assets
flagged to NHB are being certified by the Company’s Statutory Auditor/s as well as its
CFO,by way of adverse balance certificate which has last received for the position as on
December 31, 2020. The refinance extended by the Bank is governed by Section 16B of
the National Housing Act (NHB), 1987. Till date, there has no instance of fraud reported
in the pool of assets flagged to NHB.
Since default was continues and no repayment was forthcoming, the entire refinance
outstanding was recalled by NHB on November 20, 2019. At the instance of the
appropriate regulator (RBI), Corporate Insolvency Resolution Process (CIRP) was
initiated against DHFL under Insolvency and Bankruptcy Code, 2016 (IBC). By Order
dated December 03, 2019, which is also termed as date of commencement of CIR Process,
NCLT appointed an Administrator for overseeing the CIR Process of DHFL.
NHB’s Claim against the DHFL for`2436.67 Crore has been filed with the Administrator/
Interim Resolution Professional for DHFL. Due to COVID pandemic and the resultant
lockdown, there was delay in the CIR process. Finally, under CIR Process, the
Administrator put all the Resolution Plans for voting by Committee of Creditors (COC),
wherein the resolution plan submitted byPiramal Capital & Housing Finance Limitedgot
highest vote from COC. Accordingly, the Administrator filed application before NCLT
for final approval of resolution plan, which is pending.
In addition to the above, NHB has also filed recovery case in DRT against Wadhawan
Global Capital Ltd. (WGCL) for recovery of the amount due under the corporate
guarantee.
As per the adverse balance certificate received from the Company for position as on
December 31, 2020, the outstanding flagged loans was`1733.64crore and the adverse
balance was`745.18 crore. In terms of Section 16B of National Housing Bank Act, 1987,
NHB has also written letters to Administrator of DHFL to remit the amount realized
and held by it in trust for NHB, from the flagged loan accounts against which refinance
have been availed. Since, the Administrator refused to pay the amount held by DHFL
in trust, NHB filed a Interlocutory Application (IA) before the NCLT, Mumbai Bench
on July 29, 2020 claiming payment of the amount received and/or to be received by
DHFL in the flagged loan accounts and also prayed that any resolution plan that may
be finalized/approved of DHFL, it should be subject to the statutory rights of the NHB
under section 16B of NHB Act. On 07.06.2021, the Hon’ble adjudicating Authority
allowed the application in favour of NHB and made the interim arrangement arrived
between NHB and Committee of Creditors as absolute. The Committee of Creditor has
Annual Report 2020-21 | 311
