Stopped payment to creditors following court orders: DHFL
Debt-ridden mortgage firm DHFL on Sunday said it has stopped payment to its creditors, including fixed deposit holders, following the direction of Bombay High Court.
This clarification has come a day after Congress General Secretary Priyanka Gandhi termed the company a defaulter and slammed the UP government for investing the employee provident fund money in such a firm.
She wondered whose interest was being served by investing Rs 2,000 crore of the employees' hard-earned money in such a company.
"The Hon'ble High Court of Bombay in the case of Reliance Nippon Life Insurance v/s DHFL passed an order on September 30, 2019 and October 10, 2019 restraining the company from making payments to any of its secured/unsecured creditors, including the payments to any fixed deposit holders," DHFL said in a late evening regulatory filing.
The company continues to have strong collections and adequate liquidity to pay its fixed deposit holders, it said.
However, as a consequence of the orders and ..