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Kapil Wadhawan is the face of an unapologetic, brazen, corporate fraudsters-ridden crony capitalism in India. He is supposed to be in jail presently, having been apprehended in the alleged swindle of well over Rs30,000 crore in the company managed by him, Dewan Housing Finance Ltd (DHFL). (
The allegation of fraud and diversion of public funds surfaced in an online portal in January 2019. He was remanded to custody sometime in September to October 2019. In between, the credit rating agencies downgraded the debt securities of DHFL, independent directors resigned in March 2019, the auditors resigned in July or August 2019.
Reserve Bank of India (RBI) took control of the company by appointing an administrator and took the company to Insolvency and Bankruptcy Code (IBC) process, perhaps the first for a non-banking finance company (NBFC).
DHFL Administrator, Lenders Move NCLAT Against NCLT Order
Moneylife Digital Team
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R Subramaniakumar, the Reserve Bank of India (RBI)-appointed administrator for Dewan Housing Finance Ltd (DHFL), late on Sunday night moved the National Company Law Appellate Tribunal (NCLAT) against last week’s National Company Law Tribunal (NCLT) order asking lenders to consider Kapil Wadhawan s settlement offer. In its appeal, the administrator has termed the NCLT order illegal and in breach of settled provisions of law .
While reporting on the contents of the appeal, a CNBC report said that the appeal says, “The adjudicating authority (NCLT), in passing the impugned order, has overlooked relevant facts, and settled law, ignoring the submissions and contentions of not only the appellant (administrator) and the committee of creditors (CoC), but also the RBI”.
Supreme Court s order on defaulter tycoons plugs an important bankruptcy loophole
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Bankers are also hoping that the apex court s order clarifies important points like permission to attach personal assets of promoters even after a company has gone into liquidation.
Supreme Court upholds IBC rules allowing personal bankruptcy cases on tycoons
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The Supreme Court s endorsement of invoking personal guarantee s of defaulting promoters fills an important loophole in the bankrutpcy law which will increase the chances of recovery and act as a solid deterent against defaulters, bankers and lawyers said.
Over 70 petitions and challenges to the invocation of personal guarantees were bundled up and heard by the apex court including Reliance Group s Anil Ambani, Dewan Housing Finance Ltd s Kapil Wadhawan, Videocon Group s Venugopal Dhoot and Bhushan Power & Steel s Sanjay Singal.
The National Company Law Tribunal (NCLT) on Wednesday directed the administrator of DHFL to present the settlement offer of the non-banking financial company’s ousted promoter Kapil Wadhawan before th
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