DHFL bad loans: Piramal in for a long legal battle with builders
The conglomerate thought it had a gold mine in assets it could recover when it acquired DHFL, but instead it’s mired in hundreds of court cases.
3 November, 2022•13 min
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3 November, 2022•13 min
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Editor's note: A little over a year after acquiring bankrupt non-bank lender Dewan Housing Finance Corp. Ltd, Piramal Capital and Housing Finance’s plan to scale up retail lending is well underway. But behind the scenes, Piramal has launched a legal battle to recover money from real estate developers and corporate defaulters. The company has appointed an army of lawyers for this purpose—from senior advocates like Abhishek Manu Singhvi and Ashish Dholakia to top law firms like Cyril Amarchand Mangaldas, Shardul Amarchand Mangaldas & Co., Wadia Ghandy & Co., Khaitan & Co. and DSK Legal. According to data research firm Crediwatch, Piramal is involved in 295 legal cases, filed between 2021 and 2022, across multiple jurisdictions. It has been involved in 10 cases before the Supreme Court and 70 cases in high courts since the start of this year alone. Nearly 200 cases are pending at the Debts Recovery Tribunals and the Debts Recovery Appellate Tribunals, and more than 40 are pending at the National Company Law Tribunal, or NCLT. Under the Insolvency and Bankruptcy Code, acquiring a lender involves transferring a portion …
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