Mumbai-based financial services firm 63 Moons Technologies on Tuesday moved National Company Law Appellate Tribunal (NCLAT), challenging the National Company Law Tribunal's (NCLT) nod for Piramal's resolution plan.

Share Market Live

NSE

It is seeking interim protection from NCLAT, saying that the plan execution is subject to NCLAT nod. The company holds over Rs 200 crore worth of NCDs in the troubled mortgage lender.

The Mumbai-based company said the current resolution plan is "contrary to law" and “against the interest of all DHFL's creditors, including NCD (non-convertible debentures) holders.”

While agreeing to hear the plea, NCLAT issued notices to the committee of creditors (CoC), DHFL, and Piramal Group.

Earlier in June, NCLT had cleared Piramal Group's resolution plan for Dewan Housing Finance Ltd with some conditions. Piramal Group had submitted a Rs 34,250 crore bid to acquire DHFL.

The acquisition has been approved by both the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). In January 2021, DHFL's CoC had also voted in favour of selling the troubled company to the Piramal Group.

As per Piramal Group's plan, the money received from the promoter group will go to the DHFL, while its creditors will get nothing. This does not sit well with 63 Moons. FD- and NCD-holders, like 63 Moons, are the biggest lenders to DHFL and they represent public's money.

DHFL owes Rs 45,000 crore to FD- and NCD-holders, while it owes Rs 35,000 crores to commercial banks, who dominate the CoC and have the power to influence the decision.

Even after acquisition by Piramal Group, DHFL's losses stand well above Rs 50,000 crore. Out of this, those who invested up to Rs 2 lakhs stand to get their principal amount (not interest), while FD-holders stand to lose 75 percent and NCDs lose 60 percent of their investment.

First Published:Jul 6, 2021 11:52 AM IST