The Reserve Bank of India is understood to have approved the resolution plan for Dewan Housing Finance Corporation Ltd (DHFL) submitted by the Piramal Group.
“We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the Committee of Creditors,” Piramal Enterprises Ltd said in a statement on Thursday.
The CoC will now take the proposal to the National Company Law Tribunal.
Piramal Capital and Housing Finance Ltd had emerged as the successful bidder for debt laden DHFL in January this year.
The total consideration for DHFL was ₹34,250 crore, which includes an upfront cash component of ₹14,700 crore and a deferred component of ₹19,550 crore, PEL had said in its third quarter results, adding that the acquisition is in line with its strategy to diversify its loan book and increase granularity.
According to the resolution plan, Piramal will merge its existing financial services business with DHFL. The merged entity is expected to focus largely on the retail real estate and lending space.