63 Moons Technologies has countered DHFL promoter Kapil Wadhwan’s settlement offer to an RBI administrator by transferring his rights to property valued at over Rs 43,000 crore and has issued a cease and desist order against such a move, citing the Madras High Court injunction , which prohibits the NBFC from selling and alienating or encumbering assets.
63 Moons had filed civil and criminal cases against the DHFL and Wadhawans, alleging fraud and money skimming. It had invested Rs 218 crore in non-convertible bonds issued by DHFL with the promise of a high interest rate of over 9 per cent per annum but the troubled company reportedly failed to make any payment after 2016-17.
In his plea to the courts, 63 Monde had alleged that DHFL and Wadhwans “siphoned off public money and invested in shell companies and tried to default investors”.
Jailed promoter of the troubled DHFL, Kapil Wadhawan, had offered his personal and family property, which he claims is worth Rs 43,000 crore, in repayment of outstanding loans from lenders to the company. He wrote to RBI-appointed administrator R Subramaniakumar on Oct. 17, saying his offer would ensure maximum value for the assets put on block to repay loans.
In a press release issued Thursday, 63 Moons said it sent Kapil Wadhwan a cease and desist letter on Wednesday after learning of the “shocking” offer he made despite a June 24 restraining order that expires on November 23 was extended, the Madras Supreme Court has ruled that Wadhwans may not sell, encumber or trade in their assets.
Wadhwan’s offer is “shocking” because it has been subject to an injunction from the Madras High Court, the press release said, asking for an investigation into the assets in the settlement offer to RBI’s administrator.
“The mere fact that Kapil Wadhwan has now declared such a huge fortune, despite never having disclosed any of those personal fortunes before, suggests that in all likelihood he siphoned and laundered this huge sum from the DHFL by doing so projected as his property or that of his family, 63 Moons said.
It states that every investor, creditor and lender of the DHFL has a right to know whether the Wadhwans have transferred attached DHFL properties into their personal names or whether they have previously failed to disclose certain high-value assets to law enforcement and the judiciary to disclose.
It sought the seizure of all assets of Kapil and Dheeraj Wadhawan and their family members, as well as companies owned and controlled by them and their family members.
Citing a report by Grant Thornton, commissioned by the liquidation expert, which found Rs 20,000 crore in lender money had been diverted to promoters of the DHFL or companies controlled by them, it said an inquiry into the Wadhwans was needed for understanding of cases necessary is the same.
Wadhawan, who is currently in custody, has proposed the transfer of rights, title and interest in various projects that form part of his family’s real estate portfolio to allow for an orderly and complete winding up of DHFL and to maximize the value of the properties.
The appraisal of these projects, including the Juhu Galli project and the Irla project, is valued at approximately Rs. 43,879 crore at a 15 percent lower market value, the Oct. 17 letter said.
Last week, Adani Group, Piramal Enterprises and two other companies submitted bids for DHFL, the first financial services firm to be in bankruptcy proceedings, according to sources.
U.S.-based Oaktree and Hong Kong-based SC Lowy submitted bids for the DHFL on Oct. 17, the deadline for the submission of final bids, the sources said.
In November, the Reserve Bank referred DHFL, the third largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for bankruptcy.