RBI moves NCLT seeking insolvency process against DHFL

Mumbai, November 29 (IANS): The RBI on Friday filed an application in the National Company Law Tribunal's Mumbai bench for initiation of corporate insolvency resolution process against the cash-strapped Dewan Housing Finance Corporation Ltd (DHFL).

There would be a debt moratorium on DHFL as long as the insolvency process undergoes, an Reserve Bank of India (RBI) statement said.

The apex bank filed the application for initiation of corporate insolvency resolution process against DHFL under several clauses of Section 227 and Section 239 of the Insolvency and Bankruptcy Code, 2016 along with few rules under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, according to the statement.

The move comes a week after the RBI appointed an advisory committee to advise the administrator of the private sector DHFL. On November 20, it had superseded DHFL's board of directors and appointed R. Subramaniakumar as its administrator.