The administrator of Dewan Housing Finance Corporation Ltd (DHFL) is understood to have rejected the offer by the company’s promoter, Kapil Wadhawan, to settle all dues of the debt-laden firm. Persons familiar with the development said the legal advisor to DHFL’s administrator R Subramaniakumar has rejected the offer on the grounds that Wadhawan has inflated the valuation of the properties and is trying to derail the resolution process. It was pointed out that Wadhawan, who is currently lodged in Taloja jail, is a respondent in the fraud cases already being heard and so cannot offer to settle the dues.
As reported by BusinessLine earlier, Wadhawan, in a nine-page letter dated October 17 to the DHFL Administrator, had offered to settle all claims of the company and had proposed that he be allowed to transfer the right, title and interest in these projects to ensure a complete resolution of DHFL. He had also pegged the total estimated profit from about 10 projects of DHFL at about ₹44,000 crore.
Sources also indicated that none of the four entities is likely to revise their bids upwards and lenders may have to continue the resolution process with potentially huge losses.
Just four entities — Oaktree Capital, SC Lowy, Adani Group and Piramal Capital and Housing Finance — have submitted bids for DHFL with the highest being by Oaktree at about ₹28,000 crore.
The Committee of Creditors had asked them to raise the bid amount by October 31.