Piramal to get recovery from DHFL's fraudulent deals: SC

SC found that the distribution mechanism of the resolution plan did not violate any provisions of the RBI or NHB acts

- Krishna Yadav

The Supreme Court on Tuesday ruled that funds recovered from the fraudulent transactions at Dewan Housing Finance Corporation Ltd (DHFL) will go to Piramal Capital & Housing Finance Ltd, the successful resolution applicant for the bankrupt company.

The apex court upheld Piramal's resolution plan and also overturned a January 2022 order by the National Company Law Appellate Tribunal (NCLAT) that directed lenders to reconsider the valuation of the recoveries and the distribution of the recovery proceeds.

A bench of Justice Bela Trivedi and Justice Satish Chandra Sharma dismissed appeals filed by fixed deposit holders and non-convertible debenture holders, including 63 Moons Technologies Ltd, who challenged the resolution plan and the mechanism of distributing the recoveries.