OPEN APP
Home >Companies >News >No relief for depositors as SC dismisses DHFL fixed deposit holders' plea

New Delhi: Supreme Court on Friday dismissed the plea moved by fixed deposit holders of Dewan Housing Finance Corporation (DHFL) seeking a stay on the company’s plans to resume lending till their deposits are repaid.

“...We deem it not necessary to examine the merit of the contentions made by the learned Senior Counsel. The depositors are being represented by the Authorized Representative before the Committee of Creditors. We leave it open to the Appellants to raise all points and contentions before the Committee of Creditors, the Administrator and if necessary, the NCLT. In view of the above, we are not inclined to interfere with the decision of the Committee of Creditors taken on 30.12.2019. We are informed that there are nearly one lakh depositors who have invested their life time earnings with Respondent No.1. Some of the deposits have matured and some of the depositors are critically ill. We have no doubt that the concerns of the depositors and their rights shall be considered in accordance with law," said the apex court’s order by a bench headed by Justice L. Nageswara Rao.

The top court had reserved its order on 23 January.

The deposit holders had prayed for restraining DHFL from commencing, resuming or continuing its lending operations till matured deposits are duly paid, and maturing deposits are continued to be paid, and pre-mature re-payments are made to deposit holders in case of death/critical illness of deposit holder.

Mint reported on 5 January that the committee of creditors (CoC) to DHFL has approved a plan under which the mortgage lender will resume advancing home loans beginning with 500 crore a month to arrest the decline in its loan book.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout