Consultants stated that Dheeraj Wadhawan’s possible insolvency could be among the many handful of high-profile private chapter circumstances, reminiscent of that towards Anil Ambani, to achieve the Nationwide Firm Legislation Tribunal (NCLT).
The result on this case would have a bearing on the non-public insolvency proceedings towards Anil Ambani, the previous promoter of Reliance Communications and Reliance Capital. It will likely be carefully watched because the judgment might determine the fates of a number of different defaulting promoters, too.
Lender claims towards Dheeraj Wadhawan, as a private guarantor, are anticipated to cross Rs 50,000 crore, in keeping with a lender. The Mumbai NCLT has appointed Devendra Mehta, backed by Alvarez and Marsal, because the decision skilled.
Mehta will now confirm the claims made by Union Financial institution. Based mostly on the findings, he’ll suggest to the NCLT whether or not to provoke particular person insolvency proceedings towards Dheeraj Wadhawan.
Dheeraj Wadhawan was arrested on April 26, 2020 on cash laundering fees. On having spent 15 months in a non-public hopital, the Central Bureau of Investigation (CBI) court docket ordered that Wadhawan be shifted out of Kokilaben Ambani Hospital to the Taloja jail. Final week, Bombay Excessive Court docket quashed the CBI court docket order and directed Taloja jail to take him to Kokilaben Ambani Hospital for a nasal surgical procedure.
NCLT issued an order to provoke private insolvency within the first week of February following a petition by Union Financial institution of India that Wadhawan has given unconditional assure to the consortium. As soon as the NCLT accepts Mehta’s suggestion to confess Dheeraj Wadhawan for private insolvency, different lenders might want to file their claims.
Following this, Wadhawan might want to submit a plan to repay the declare quantity, failing which the decision skilled can proceed towards him to recuperate the claimed quantity in accordance with the chapter code.
Bankrupt DHFL was offered final June to Piramal Capital and Housing Finance for Rs 37,250 crore below the company insolvency and backbone proceedings (CIRP) initiated by the Reserve Financial institution of India (RBI). Lenders will declare the remaining quantity they didn’t recuperate below the CIRP. The result of Wadhawan’s insolvency proceedings can be as carefully watched as earlier proceedings towards Anil Ambani, stalled for greater than a 12 months after the debtor filed a counter-application. Private insolvency towards Anil Ambani was admitted in August 2020, however Delhi Excessive Court docket stayed the method every week later.