DHFL scam: Dheeraj Wadhawan may have to face personal insolvency action

A bankruptcy court has directed the interim resolution professional to assess whether personal insolvency proceedings should start against the former promoter of Dewan Housing Finance (DHFL) for recovering Rs 3,958 crore in dues to the Union Bank of India.

Experts said that Dheeraj Wadhawan's likely insolvency would be among the handful of high-profile personal bankruptcy cases, such as that against Anil Ambani, to reach the NCLT. The outcome in this case would have a bearing on the personal insolvency proceedings against Anil Ambani, the former promoter of Reliance Communications and Reliance Capital. It will be closely watched as the judgment could decide the fates of several other defaulting promoters, too.

Lender claims against Dheeraj Wadhawan, as a personal guarantor, are expected to cross ₹50,000 crore, according to a lender. The Mumbai bench of NCLT has appointed Devendra Mehta, backed by Alvarez and Marsal, as the resolution professional.

Mehta will verify claims made by Union Bank. Based on the findings, he will recommend to the NCLT whether to initiate individual insolvency proceedings against Wadhawan.

Wadhawan was arrested on April 26, 2020 on money laundering charges. On having spent 15 months in a private hospital, the CBI court ordered that Wadhawan be shifted out of Kokilaben Ambani Hospital to the Taloja prison. Last week, Bombay HC quashed the court order and directed Taloja jail to take him to the hospital for a nasal surgery.