DHFL Crisis: Bombay HC Restrains Promoters From Travelling Abroad

The Bombay High Court on Thursday restricted Dheeraj Wadhwan and Kapil Wadhwan, promoters of the crisis-hit Dewan Housing Finance Ltd (DHFL) from travelling abroad while hearing an application filed by 63 Moons Technologies Ltd seeking recovery of Rs.200 cr owed by DHFL.

Justice SJ Kathawalla refused relief to the brothers and said that the two will have to take permission from Court for leaving the country.

Senior Advocate Gaurav Joshi and Cyrus Adeshir appeared on behalf of the defendant brothers. They challenged the maintainability of the plaintiff's application and contended that trustees of the bond-holders already moved an application before the Debt Recovery Tribunal (DRT), Pune bench for recovery of dues on behalf of debenture holders.

They informed the Court that Dheeraj Wadhawan, also known as Baba Dewan amidst social circles in Mumbai is admitted in Lilavati Hospital allegedly suffering from a lung infection and the Kapil Wadhawan is in India and "is trying to sort out the problems."

It was further submitted that the defendants may have to travel abroad for raising funds. Appearing for the plaintiff, Senior Advocate DD Madon objected to this and submitted that the defendants may escape if allowed to leave the country.

The Jignesh Shah promoted 63 Moons had subscribed to the non-convertible debentures (NCD) of DHFL, after DHFL failed to repay the money, the plaintiff moved court.

Edelweiss AMC, Kotak Mahindra AMC, Axis Asset Management and Reliance Nippon had moved the Bombay High Court seeking disclosure of all its assets and liabilities of DHFL. They also sought directions restraining DHFL from making any payments/disbursements to secured and unsecured creditors. High Court had ruled against DHFL in all the cases.

DHFL is currently under investigation for alleged financial irregularities by multiple agencies. Enforcement Directorate (ED) is examining an Rs.2186 crore loan given by DHFL to Sunblink Real Estate, a Non-Banking Finance Company (NBFC). The money was allegedly used to acquire properties in the name of Iqbal Mirchi, a close associate of Dawood Ibrahim. Serious Fraud Investigation Office (SFIO) is also probing DHFL for alleged financial fraud.