RBI Permits Piramal Group to Take Charge of DHFL

The Reserve Bank of India has permitted the takeover of Dewan Housing Finance Corporation Ltd by the Piramal Group.

The development comes post a month after the Committee of Creditors (CoC) of DHFL voted in favour of Piramal's bid with 94 percent votes and approved its resolution plan.

In a statement released by Piramal Group, "We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC."

Currently, the proposed takeover requires the approval of the National Company Law Tribunal.

The other major contender for the debt-ridden NBFC was US-based Oaktree Capital which secured around 45 percent of the votes from the lenders in the voting process last month.

The total offer of Piramal was 37,250 crore, compared to 38,400 crore offered by Oaktree. However, Piramal had provided higher upfront cash payment. The total dues of DHFL stand at around 90,000 crore.

Piramal, in its proposal, has offered an additional amount in the resolution process to fixed deposit holders, over and above what the CoC offers them through the IBC resolution.