By Ankur Mishra

A number of mounted deposit (FD) holders of Dewan Housing Finance Company (DHFL) are planning to vote in opposition to the decision on the ‘distribution mechanism’ from the potential restoration quantity for the lender. Vinay Kumar Mittal, a lead petitioner within the courtroom on behalf of FD holders, instructed FE that depositors are going to vote in opposition to the decision as a lot of them will get well a negligible quantity as per proposal. Deposit holders have admitted claims of over Rs 5,500 crore from DHFL.

The decision on distribution mechanism is open for voting until January 15 and it proposes to classify FD holders and non-convertible debenture (NCD) holders into 4 brackets based mostly on their admitted claims. The primary bracket shall be as much as Rs 2 lakh, the second class is between Rs 2 lakh to Rs 5 lakh. The third class is between Rs 5 lakh to Rs 10 lakh and the fourth one is over and above admitted claims of Rs 10 lakh. The decision proposes to pay full principal quantity to first class of FD and NCD holders beneath Rs 2 lakh bracket.

The decision says, “The mixture extra quantities to be distributed to the FD holders in class 1 and secured NCD holders in class 1 shall be paid in full to the extent of principal from upfront money as much as 2% of the decision plan cost with the intention of offering the utmost principal restoration to the premise quantities out there.”

Vinay Kumar Mittal mentioned FD holders, barring these in Rs 2 lakh bracket, are going to lose most amount of cash as their restoration isn’t outlined within the plan. “Even when, committee of collectors (CoC) approves the decision attributable to their giant voting share, we’ll battle the matter in courtroom,” he mentioned. The Nationwide Firm Legislation Tribunal is individually listening to FD holders’ petition on DHFL dues. The courtroom is slated to listen to the matter subsequent on January 20,2021. “We had invested our hard-earned financial savings right into a AAA rated firm regulated by Nationwide Housing Financial institution (NHB) and Reserve Financial institution of India (RBI), then why ought to we lose complete quantity?” he mentioned.

Together with the decision on distribution mechanism, the lenders have began voting on the bids submitted by Oaktree Capital, Piramal Capital and Housing Finance (PCHFL) and Adani Properties for DHFL. The troubled lender has admitted claims of Rs 87,407 crore, with State Financial institution of India being the lead creditor. DHFL is present process insolvency proceedings at NCLT, Mumbai since December 3, 2019.