Allow Cookies!
By using our website, you agree to the use of cookies
Tata Mutual Fund (MF) has approached the National Company Law Tribunal (NCLT) for repayment of dues of over Rs. 120 crore which was owed to the Tata Mutual Fund by Dewan Housing Finance Corporation (DHFL). It is also being said by people and other sources that Tata has demanded several disclosures from the Finance company. The matter has been listed for next hearing in the second week of November. It is also very likely that the slow progress in the Inter-Creditor Agreement would make other Mutual Funds to take the legal recourse too in order to recover their dues.
Other than Tata, Nippon India Mutual Fund, Reliance Mutual Fund, Edelweiss Asset Management Company, Kotak Asset Management Company, and Axis Asset Management Company have approached Bombay High Court for recovery of their dues on October 10, 2019. The Bombay High Court had also allowed Edelweiss’ plea for disclosure of assets of the Dewan Housing Finance Corporation. However, other funding houses have refrained to resort to legal recourse and have decided to support the resolution plan of the company.
In a recent report submitted by KPMG, it was said that Dewan Housing Finance Corporation was not able to produce any statements as to the end-use of funds which was generated by the company. The report also mentioned that funds of over Rs. 12, 541 crore disbursed by the company was untraceable. The housing finance company owes Rs. 83,873 to banks, National Housing Boards, Mutual funds and bondholders, including retail bondholders as of July 6, 2019. The company’s total secured debt stands at Rs. 74,054 crore and the unsecured debt stands at Rs. 9,818 crore as of July 6, 2019. The company’s share price reduced by 5% and was recorded to be at Rs. 17.55 on Friday. It is said that since IL&FS crisis started, the housing finance company has witnessed 97% of its market wealth to come down.
86540
103860
630
114
59824