DHFL resolution may fetch Piramals a windfall

The resolution plan drawn up by the committee of creditors seems unduly generous to the new owners even as it gives ordinary creditors the short shrift.

The resolution of bankrupt Dewan Housing Finance Ltd under the Insolvency and Bankruptcy Code for a consideration of Rs 34,500 crore by Piramal Capital and Housing Finance Ltd seems like a done deal. 

The Reserve Bank of India and Competition Commission of India have given their blessing to the resolution plan. Yet, the feeling persists that the committee of creditors, which worked out the plan, may have either erred or taken a lenient approach in clearing the deal.

For one, the resolution plan approved by the committee has assigned a mere Re 1 value to the estimated Rs 30,000-Rs 40,000 …


Jayshree P. Upadhyay

Jayshree is a former writer at The Morning Context. As journalist, she had nearly a decade of experience across Mint, Business Standard and Bloomberg TV India. The bulk of her career has been devoted to tracking the capital markets regulator, exchanges, regulatory policies, financial scams and corporate governance issues. One of her biggest breaking stories was her incisive coverage of the colocation scam which put the lapses at NSE in the public domain.