Case Brief
The Reserve Bank of India, exercising powers under Section 45-IE(1) of the RBI Act, 1934, superseded the Board of Directors of Dewan Housing Finance Corporation Limited (DHFL). The action was taken because of governance concerns and DHFL’s defaults in meeting various payment obligations. Shri R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, was appointed as Administrator under Section 45-IE(2). RBI also stated that it intended to initiate the resolution process for the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and to apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional.
Action Snapshot
- Primary Impact
- Board supersession
- Entity Type
- NBFC
- Action Type