In a letter to RBI Governor Shaktikanta Das and Sebi Chairman Ajay Tyagi, with copies marked to the Prime Minister’s Office, Wadhwan has alleged that 63 Moons is searching for to present priority to the restoration of its dues over the Rs 80,000 crore of excellent that different collectors would get to settle within the insolvency course of.
When reached for feedback, a 63 Moons spokesperson, in a press release, expressed shock at Wadhawan having the ability to write the letter from Taloja Prison (New Mumbai) and mentioned, whereas it could not wish to touch upon the contents of the letter, the corporate was “committed to recovering its money”.
While the spokesperson didn’t state what its excellent due from DHFL is, Wadhawan, within the letter, acknowledged that 63 Moons had invested Rs 200 crore in non-convertible debentures of DHFL throughout a public difficulty in 2016 and these are redeemable from 2023 onwards.
“I am constrained to address this letter to draw your attention to the unfortunate and destructive actions taken by 63 Moons Technologies which are likely to disrupt the entire resolution process of DHFL which is presently undergoing,” Wadhawan mentioned in his letter, a duplicate of which has been reviewed by .
63 Moons has filed a writ petition earlier than the Madras High Court searching for attachment of property belonging to DHFL, Wadhawan mentioned within the letter.
“In the guise of this writ petition, 63 Moons is seeking to get precedence over every other creditor of DHFL including the poor FD (Fixed Deposit) holders who will be left in the lurch if any order as prayed for by 63 Moons is granted. This is apart from the substratum of the resolution process under the IBC (Insolvency and Bankruptcy Code) being completely destroyed if reliefs are granted to 63 Moons,” mentioned the previous promoter of DHFL.
Wadhawan has sought quick steps from the regulatory authorities in order to forestall the “malafide actions” of 63 Moons from succeeding, which he alleged have been “devoid of any merits”, “malafide” and “not maintainable”.
According to the letter, 63 Moons had subscribed to non-convertible debentures of DHFL in a public difficulty in 2016.
“These NCDs are redeemable from the year 2023 onwards. The total debt payable to 63 Moons is Rs 200 crore as opposed to more than Rs 80,000 crore to all creditors put together,” Wadhawan’s letter mentioned.
DHFL confronted liquidity disaster after the IL&FS fiasco in September 2018.
The non-banking monetary firm confronted extreme liquidity crunch. However, it managed to repay almost Rs 44,000 crore to its collectors subsequently.
Later on, after the intervention of the Reserve Bank, an administrator was appointed to move the corporate in November 2019. A 3-member committee has additionally been appointed to be the advisors to the administrator.
Currently, DHFL is present process a decision course of in the National Company Law Tribunal (NCLT) beneath the IBC. It can also be the primary monetary sector firm to be present process such a course of.
63 Moons had additionally filed a swimsuit in 2019 within the Bombay High Court in opposition to DHFL claiming an quantity of Rs 231 crore together with curiosity and likewise claimed numerous reliefs.
Wadhawan mentioned having didn’t get better its monies within the mentioned Bombay swimsuit, which was stayed as soon as the moratorium commenced beneath the IBC, 63 Moons filed another swimsuit in the Chennai High Court.
“I request your urgent intervention to prevent 63 Moons from disrupting the resolution process and to ensure that thousands of crores of public money is not irretrievably lost,” the letter mentioned.
The multitude of disputes between collectors of DHFL, decision candidates and different stakeholders may have been averted if the 2019 plan that had been accredited by all of the banks which provided 100 per cent compensation of the principal quantity to all collectors is taken into account with applicable modifications by the CoC (Committee of Creditors) and Administrator, Wadhwan mentioned within the letter.
“It would be in the interest of all stakeholders if the CoC/ Administrator were directed to urgently consider the 2019 plan particularly as the other bids received by DHFL result in a 70 per cent haircut to all creditors and a write off of nearly Rs 40,000-50,000 crore public money,” he mentioned.
According to the 63 Moons spokesperson, the corporate is “committed to recovering its money” and that it’ll shortly present particulars of all private property of Kapil and his brother Dheeraj Wadhawan to involved authorities.
“Having didn’t both intervene within the writ proceedings or have the injunction orders vacated, Kapil Wadhawan now seeks for regulatory intervention in judicial proceedings pending earlier than the Madras High Court which is impermissible in legislation.
“That, in fact, would amount to interference in the administration of justice. We are certain the regulators would be aware of this legal position,” the spokesperson mentioned within the assertion.
Noting that 63 Moons is merely exercising its authorized rights to get better its cash, the spokesperson mentioned the corporate is dedicated to recovering its cash and can proceed to take appropriate and applicable motion in accordance with legislation.
“There is not any query of disrupting any course of earlier than the NCLT pursuant to IBC. To the opposite, Kapil Wadhawan has been making final ditch efforts to intervene in proceedings earlier than the NCLT, presumably to suppress the precise occasions that result in DHFL’s large defaults in extra of (Rs) 84,000 crore.
“Hence, if there is any attempt to disrupt the process before the NCLT, it is by Kapil Wadhawan alone,” the 63 Moons spokesperson mentioned.