Reserve Bank of India (RBI) has approved Piramal Group taking over Dewan Housing Finance Limited (DHFL) after they won the bid to take over the non-banking finance company in January.
The Group will now take the proposal to National Company Law Tribunal (NCLT) for approval. Piramal Group got more than 94 per cent votes from the creditors to DHFL on January 15. The competitors at the time were Oaktree Capital and Adani Capital. Piramal Group won the votes despite bidding lower than Oaktree. DHFL went bankrupt in late 2018.
Piramal is planning to take DHFL and merge it with its own Piramal Capital and Housing Finance Limited (PCHFL). Piramal Group said in a statement, “We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC (Committee of Creditors).” DHFL currently defaults by 91,000 crores.