In what could throw a wrench in Dewan Housing Finance Corporation Ltd’s ongoing debt resolution process, its former promoter Kapil Wadhwan has written to the RBI-appointed administrator of DHFL, claiming that “external forces” are trying to depreciate the value of the goods.
Putting the total estimated profit of around 10 projects of DHFL at nearly ₹44,000 crore, Wadhawan who is currently being held in a Mumbai jail alleged an attempt to suppress the true value. The letter was written from inside Taloja prison on October 17, which was the last day for submitting bids for the indebted housing finance company in insolvency proceedings.
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Calling for due diligence and an independent valuation of properties held by the DHFL Group, Wadhawan wrote to R Subramaniakumar, Director, DHFL, offering to settle all of the company’s claims.
Emphasizing that his effort is to ensure maximum value and not allow the acceptance of lower value offers, Wadhawan in his letter also called for a practical and achievable approach by all stakeholders to complete the resolution. of DHFL and derive the maximum value from it.
“…at the time of submission of the resolution plan, cash flow reports for some of these projects were from reputable and internationally recognized external appraisers who collectively valued the projects at ₹43,879 crore,” said Wadhawan said, adding that these were conservative estimates and below market value.
“At the development plan stage, even with the 15% development fee charged by reputable developers, based on the conservative cash flow estimate, it was evident that all of the lenders to DHFL could be repaid without any discount. on the principal amount lent by them and interest was also to be paid to certain categories of lenders,” he added.
Last November, DHFL was the first company in the financial sector to be subject to corporate insolvency proceedings. The pandemic and the lockdown have disrupted the process and the deadline for submission of bids has been pushed back several times.
“At the development plan stage…it was clear that all of DHFL’s lenders could be repaid without any principal amount discount…”