MUMBAI: Citing governance concerns, the Reserve Bank of India on Wednesday superseded the Board of Directors of Dewan Housing Finance Corporation Limited (DHFL) and said it intends to shortly initiate the process of resolution of the company.
The RBI also appointed the R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, as the "Administrator under Section 45-IE (2) of the Reserve Bank of India Act, 1934".
"In exercise of the powers conferred under Section 45-IE (I) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations," RBI said in a statement.
The Reserve Bank also intends to shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional, the central bank said.