DHFL is undergoing insolvency proceedings at National Company Law Tribunal (NCLT), Mumbai.
Troubled mortgage lender Dewan Housing Finance Corporation (DHFL) posted a net loss of Rs 13,095 crore in the third quarter (Q3FY20). DHFL had posted a net profit of Rs 934 crore in the year-ago quarter. The total expenses increased by 663% year-on-year (y-o-y), and 300% sequentially to Rs 19,884 crore. Total revenue from operations declined 6% y-o-y to Rs 2,206 crore but remained flat sequentially.
DHFL is undergoing insolvency proceedings at National Company Law Tribunal (NCLT), Mumbai. Committee of Creditors (CoC) has already approved Piramal Capital Housing Finance’s (PCHFL) Rs 34,250 crore bid for DHFL. However, the bankruptcy court is yet to approve PCHFL’s resolution plan for DHFL.
“During this quarter additional transaction amounting to Rs 1,039.84 crore has been identified and reported by the company to stock exchanges and National Housing Bank (NHB),” the company said. The company has made provisions as per NHB guidelines about fraud accounts.
The company’s-chartered accountant said in its report that the net worth of the company is fully eroded, rendering the company unable to comply with the regulatory requirements of NHB in respect of the net owned fund (NOF) and which also resulted in multiple contraventions of the provisions of NHB Act, 1987, directions and guidelines thereon.
The company said that Enforcement Directorate (ED) is probing the company in connection with loans given by it to certain borrowers. The Central Bureau of Investigation (CBI) has also initiated an investigation in connection with certain loans granted by the company, it further said.
The admitted claims of the troubled lender stood at Rs 87,120 crore as of September 10, 2020. State Bank of India is the lead creditor with claims of Rs 10,083 crore.