BANK SENDS WADHAWANS RECOVERY NOTICE FOR RS. 3,000 CRORE | 19 September, 2020

Union Bank Of India has sent the Wadhawan brothers, Kapil and Dheeraj, promoters of Dewan Housing Finance Corporation Ltd. (DHFL), a demand notice for recovering Rs. 3,000 crore for which personal guarantees were given. The bank plans to move the National Company Law Tribunal (NCLT) for filing personal insolvency petition against the promoters if payment is not received by the month-end. According to an amendment to the Insolvency and Bankruptcy Code (IBC) in December 2019, creditors can file insolvency application against personal guarantors before the NCLT. Dheeraj Wadhawan is also a film producer.

DHFL’s administrator, R. Subramaniakumar, had earlier moved the NCLT against 87 respondents, including Kapil and Dheeraj Wadhawan, on the alleged fraud detected in giving loans. The application was moved after fraudulent transactions worth Rs. 14,046 crore were found in the initial report of Grant Thornton.