Headquartered in Mumbai, the deposit-taking finance company, Dewan Housing Finance Corporation Ltd. (DHFL) is facing nearly 11-year low. Furthermore, the company was locked in the lower circuit for the third successive session on Friday.
Reports allege, the Bombay High Court refrained the company from advancing further payments or even disbursements to any unsecured creditors until further orders were announced.
Investment and financial services company, Edelweiss Group also determined its subsidiary has approached the Bombay High Court to recover dues from the debt-laden DHFL.
“Our subsidiary Edelweiss Asset Management Ltd (which has various schemes of mutual funds) has approached the Bombay High Court for recovery of principal and interest dues from DHFL,” said a source from Edelweiss Group in a regulatory filing on Thursday.
Sources also allege DHFL has siphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore after layers of shell companies.
In addition, the scrip is known to have tanked about 10 percent to Rs 21.15, whereas the benchmark BSE Sensex shot up to over 1 percent in the morning trade.
Furthermore, the depository CDSL restricted the shareholding of promoters for debt-ridden mortgage lenders as a result of the delay in announcing the financial earnings of the company.
Moreover, with regards to the report published by PTI, the decision was taken after the company could not announce its results of the first quarterly. Sources close to DHFL claim the company results will be announced in the next few days which also explains the board meeting that is to follow later.
Sources hence conclude the company is in deep trouble owning to the indebted loan amount.
Tags : Mumbai, Dewan Housing Finance Corporation Ltd., DHFL, Bombay High Court, Edelweiss Asset Management Ltd, CDSL ,