Wadhawans lose control of DHFL after RBI dissolves the board after multiple defaults

• RBI superseded the board of Dewan Housing Finance Corporation (DHFL).
  
• The Central Bank was concerned with governance concerns and defaults on various debt instruments.
  
• It appointed R Subramaniakumar, the former managing director of Indian Overseas Bank as the administrator.
  

The Reserve Bank on Wednesday superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments.

The central bank has also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third largest pureplay mortgage lender.

The announcement comes after the government last week empowered the RBI to refer stressed NBFCs and HFCs having assets worth of at least Rs 500 crore to insolvency court.

"The Reserve Bank has today superseded the board of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations," RBI said in a statement.

It further said shortly initiate the process of resolution of the company under the bankruptcy code, 2019 and would also apply to the NCLT for appointing the administrator as the resolution professional.