NCLT admits RBI plea seeking DHFL bankruptcy resolution

The Mumbai bench of the National Company Law Tribunal on Monday admitted an RBI petition seeking bankruptcy proceedings to resolve the mortgage player Dewan Housing Finance (DHFL).

The move came in after the Reserve Bank last Friday made an application for bankruptcy proceedings to resolve the credit and liquidity crisis at the company, which became the first financial sector player being sent for bankruptcy.

Admitting the petition, an NCLT bench said, "the petition deserves admission."

The third-largest pure-play mortgage player has been in a liquidity crisis for long and on November 20 the RBI had superseded its board and placed under an administrator.

Following this, the RBI had last Friday issued a statement that it would be sent to NCLT for debt resolution.