DHFL case | Ex-promoter Kapil Wadhawan proposes to repay 100% to creditors in 7-8 years

DHFL erstwhile promoter Kapil Wadhawan.

Crisis-hit Dewan Housing Finance Corporation Limited's (DHFL) erstwhile promoter Kapil Wadhawan on December 14 submitted a proposal to the DHFL administrator, Prime Minister's Office, Ministry of Corporate Affairs, Finance Ministry and other agencies to repay 100 percent principal to all the creditors within 7-8 years.

In his proposal, Wadhawan also promised to pay an upward payment of Rs 9,000 crore to the creditors. He also requested the committee of creditors to consider his settlement proposal instead of permitting to sell DHFL for a lower bid.

"My proposal provides for a full repayment of 100% principal to all creditors within 7-8 years with an upfront payment of Rs 9,000 crore," Wadhawan said.

Citing lower bidding, Wadhawan added, "Any lower bids would not only be unjust to the creditors but also a deliberate attempt to undervalue the bid offers and deprive the creditors of their dues."

In the letter to the administrator, he claimed that this is his last-ditch attempt to protect DHFL in the interest of all stakeholders and to set a benchmark that all bidders expect to meet.

Earlier, the crisis-ridden non-banking finance company's fraudulent transactions worth Rs 1,058.32 crore by way of undervaluation, fraud and preferential treatment to certain entities have been detected by transaction auditor Grant Thornton (GT). Currently, the firm is undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).

As of July 2019, the beleaguered home financier owed Rs 83,873 crore to banks, National Housing Bank, mutual funds and bondholders/ retail bondholders.