Ex-promoter Kapil Wadhawan alleges 63 Moons of derailing DHFL’s resolution process

Ex-promoter Kapil Wadhawan has alleged that Jignesh Shah-owned 63 Moons Technologies Ltd is trying to derail the insolvency resolution process of Dewan Housing Finance Ltd (DHFL).

In a letter written to governor of the Reserve Bank of India (RBI), chairman of Sebi as well as the Prime Minister and ministry of corporate affairs, Wadhawan has requested their urgent intervention into the matter preventing 63 Moons from disrupting the resolution process of DHFL and ensuring thousand of crores of public money is not irretrievably lost.

According to the letter, 63 Moons has filed a writ petition in the Chennai High Court requesting the court to direct the Tamil Nadu government to attach various assets of DHFL. Wadhawan has accused the promoters of 63 Moons of getting precedence over other creditors (including the fixed deposit holders) in the guise of the writ petition filed in the Chennai High Court.

Kapil Wadhawan has said that said if relief is granted to 63 Moons by the court than this will ‘destroy’ the sanctity of Insolvency and Bankruptcy Code (IBC).

According to the ex-promoter of DHFL, 63 Moons had subscribed to DHFL’s non-convertible debentures worth Rs 200 crore in 2016. The NCD was redeemable from 2023 onwards. He has further claimed in his letter that after the company faced liquidity crisis following the collapse of IL&FS, 63 Moons moved Bombay High Court to recover Rs 231 crore (Rs 200 crore plus interest). However, after having failed to recover the money through the suit filed in Bombay High court (suit was stayed after the moratorium period began under IBC), 63 Moons has now moved the Chennai High Court.

Kapil Wadhawan has written a similar letter to administrator R Subramaniakumar.

DHFL owes around Rs 87,000 crore to different creditors. Adani Group, Piramal Enterprises and a couple of foreign distressed asset firms are vying for its assets.