AN URGENT APPEAL TO THE PRESIDENT OF INDIA: FIXED DEPOSIT HOLDERS OF DHFL
In 2019, Dewan Housing Finance Corporation Limited (DHFL), an AAA-rating shadow banking company, stopped payment of fixed deposits, bonds and also defaulted on its loan obligations.
In August 2019, while efforts were being made for preparing a draft resolution plan by restructuring DHFL debt into equity, a few of the DHFL bond holders moved to the debt recovery tribunal, which impacted the resolution process. Still, the company offered to repay all investors in full with due process of inter-creditor-agreement.
In October 2019, the Enforcement Directorate (ED) conducted raids at several places and buildings of DHFL offices and promoter residences and found links of money laundering activity in loans given to firms closely linked to the promoters of the company.
On November 20th, 2019, under Section 45-IE (I) of the Reserve Bank of India Act, 1934, the Indian central bank dismissed the board of directors (DHFL). The reasons cited by the banking regulator for the dismissal of the DHFL board of directors were: inadequate governance as well as various defaults on its payment obligation.
On January 27, 2020, the promoter of DHFL, Kapil Wadhawan, was arrested under the Prevention of Money Laundering Act (PMLA). The arrest was connected to his firm's alleged involvement in providing loans to the organized criminal enterprise of Dawood Ibrahim.
On February 22, 2020, the PMLA court granted bail to Kapil Wadhawan due to lack of evidence. The Bombay High Court upheld the bail decision by PMLA Court, rejecting Indian Enforcement Directorate's (ED) requests to stay the bail application.
During this resolution process under the apt guidance of the Reserve Bank of India, the Fixed Deposit holders’ investments are blocked and the future of the FD holders is bleak.
Source: Wikipedia, the free Encyclopedia
The Honourable President,
Republic of India,
New Delhi- 110004
Sub: an appeal from distressed Fixed Deposit Holders of Dewan Housing Finance Corporation Limited (DHFL) at the time of COVID-19 Pandemic
We, the FD holders as well as our relatives and friends, earnestly request you to help us recover the hard-earned money invested at the Dewan Housing Finance Corporation Limited (DHFL) in the form of Fixed Deposits at the time of COVID-19 pandemic.
As you know well that this shadow bank is undergoing a moratorium since it was referred to the Insolvency and Bankruptcy Court a few months ago. DHFL is now under the apt guidance of the RBI and our money is stuck due to various complex legal issues.
We have invested here in FDs depending on the AAA-rating of the company as we are totally illiterate and ignorant about other forms of investments. Moreover, we have followed the footsteps of Shri Shri Ramakrishna Mission, Missionaries of Charity, Air Force, Uttar Pradesh Power Corporation Limited (UPPCL), Uttar Pradesh Gramin Udyog etc., who also have their FD money stuck at DHFL.
It is an appeal to your honourable counsel to kindly look after this whole matter on humanitarian and philanthropic grounds and relieve us of this unbearable burden. Among us, there are many senior citizens, pensioners, ailing patients and many of us are running our family depending on the interest of our FDs. During this international lockdown, we are not only deprived of our FD interests, we are also unable to earn by performing other types of works at home.
It is a different type of “capital” punishment for us. If you please help us with your kind discretionary powers to get out of this claustrophobic situation, we will forever remain obliged to your kind self.
In the context of worldwide pandemic, we are reiterating a mantra from Yajur Veda and Bṛhadāraṇyaka Upaniṣada for the well-being of mānavagotra :
ॐ सर्वे भवन्तु सुखिनः सर्वे सन्तु निरामयाः ।
सर्वे भद्राणि पश्यन्तु मा कश्चिद्दुःखभाग्भवेत् ।
ॐ शान्तिः शान्तिः शान्तिः॥
1. The Honourable Prime Minister, Government of India
2. The Honourable Finance Minister, Government of India
3. The Honourable Governor, Reserve Bank of India, Government of India
4. The Honourable Administrator, Reserve Bank of India, DHFL, Government of India
5. The Honourable Authorised Representative acting on behalf of the Public Depositors, DHFL, Government of India
The AN URGENT APPEAL TO THE PRESIDENT OF INDIA: FIXED DEPOSIT HOLDERS OF DHFL petition to The Honourable President, Republic of India was written by Debaprasad Bandyopadhyay and is in the category Consumer Affairs at GoPetition.