DHFL resolution may fetch Piramals a windfall

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Editor's note: 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 crore swindled by the Wadhawan brothers, the erstwhile promoters of DHFL, by misusing government schemes. This, basically, means Piramal Capital gets every cent of any recovery made against these monies.   Second, the extent of haircut that creditors will have to take has left many unhappy. While for secured creditors like banks and financial institutions the haircut is in the region of 60%, for unsecured creditors such as fixed deposit and bond holders it is in excess of 90%. A bunch …