RBI supersedes DHFL board to initiate insolvency proceedings

The Reserve Bank of India superseded the board of debt-laden Dewan Housing Finance Corporation Limited (DHFL) as it intends to shortly initiate the process of resolution of the company under the insolvency and bankruptcy rules. The company is all set to become India’s first financier to land up in bankruptcy courts.

The central bank superseded the board “owing to governance concerns and defaults by DHFL in meeting various payment obligations. R Subramaniakumar, ex-MD and CEO of Indian Overseas Bank has been appointed as the administrator.