Piramal Group says NCLAT order not affecting its acquisition

Piramal Group, which is all set to acquire Dewan Housing Finance DHFL for a total of 38,050 crore, said on Friday that the latest directive by the National Company Law Appellate Tribunal NCLAT will not affect its acquisition. The business integration continues as planned and the DHFL acquisition is unaffected by Piramal Group. The integration comprises assimilating into Piramal culture and ethos of people, practices and processes, it said in a statement.

The NCLAT has directed DHFL lenders to reconsider their decision regarding the valuation of the financial firm's avoidable transactions and approve the insolvency resolution plan submitted by Piramal Capital Housing Finance Ltd.

Piramal said that most of the appeals filed by several parties against its resolution plan were disposed of on January 27. In one of the appeals, the party had challenged the distribution of proceeds if any from fraudulent transactions to the benefit of the Resolution Applicant. The NCLAT had asked the Committee of Creditors CoC to reconsider that particularly. We looked at the detailed judgment of the NCLAT and consulted our legal advisors. The company stated that they were confident in the matter and will continue to pursue the matter as there are multiple legal options available to us for our future course of action, including approaching the apex court.

In September last year, Piramal Group had acquired DHFL for a consideration of Rs 34,250 crore, which will be paid in a combination of cash and non-convertible debentures and Rs 3,800 crore as the entitlement of the creditors per the resolution plan.

Piramal Group has retained over 3,000 employees of the DHFL Group and is adding over 2,000 new jobs in the merged entity.