Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Corporation Ltd (DHFL), has submitted an alternative proposal that he contends is better than the bids submitted as part of the resolution process until now.
Noting that there is a possibility of a potential litigation amongst the bidders, he urged that his proposal be considered by the RBI, the advisors to the DHFL Administrator and the committee of creditors (CoC).
“You will appreciate that the alternative proposal that I have now made is significantly better than the bids made by any of the bidders by a wide margin. It is apparent that the bidders are offering no real value for the wholesale book and are seeking to retain for themselves the profits that they will earn through further retail lending,” Wadhawan said in a fresh letter to RBI Governor Shaktikanta Das, DHFL’s Administrator R Subramaniakumar and the CoC.
His revised offer has a total value of ₹91,158 crore and provides for full repayment of the principal to all the creditors. Among other provisions, it includes ₹31,000 crore to be paid within a period of seven years in equal annual instalments with 8.5 per cent per annum interest, said Wadhawan.
“...it will be apparent to all that not only is the proposal fully implementable but is also in the best interest of all the creditors, and will ensure the recovery of thousands of crores of public money,” he added.
He also said he is willing for the banks to appoint a professional management and for him to act in the capacity of a consultant.