DHFL

About DHFL

Dewan Housing Finance Corporation defaulted on its debt in 2019. DHFL was one of the largest housing finance companies in India. A CobraPost investigation had alleged that DHFL had routed loans to shell companies connected to its promoters. DHFL owed approximately 910 billion rupees to creditors. The Reserve Bank of India superseded the board and initiated bankruptcy proceedings. In 2021, Piramal Capital and Housing Finance acquired DHFL for approximately 345 billion rupees. The acquisition was the first resolution under the Insolvency and Bankruptcy Code for a financial services company. Creditors recovered approximately 40 percent. The case exposed the risks of aggressive lending by housing finance companies and the problem of connected lending in India.