Respected President of India, Think Twice Before Annihilating DHFL FD, NCD & Share-Holders

INTRODUCTION

After Dewan Housing Finance Corporation Limited (DHFL, once it was AAA+ rated company) was referred to the IBC on 22 November 2019, the RBI appointed a Committee of Creditors (COC). The COC planfully, in a pre-determined way, deprive FD and NCD Holders for handling it over to a particular company (Piramal Capital and Housing Finance Limited), following the authoritarian rituals of monopoly and crony capitalism as it exists in contemporary oligarchic Indian political economy. Therefore, the FD and NCD-holders of the DHFL are now victims of simulated financial abuse and suffering from extreme pecuniary miseries and psychosomatic disorders (especially in the context of Pandemic) due to the non-payment of their hard-earned money. For more details, kindly view the following hyperlinks:

We wish to forward this campaign to the President, the Prime Minister, the Finance Minister, the Minister of Law and Justice of the Republic of India and to the Reserve Bank of India (RBI) Governor as well. This campaign is also to be dispatched to the United Nations Organization (UNO) under the United Nations Guiding Principles on Business and Human Rights ⤡ , especially the provision for “Access to remedy for victims of business-related abuses". Thus, our plea is being addressed to the International Court of Justice, United Nations High Commissioner for Human Rights (OHCHR) and the Economic and Social Council for the remedying the victims of financial abuse in the context of DHFL Scam.

THE APPEAL

To, Shri Ram Nath Kovind, The Honourable President, The Republic of India Rashtrapati Bhawan, New Delhi – 110004

Sub: Sufferings of Fixed Deposit (FD) holders due to the IBC Act in the Resolution Process of DHFL

Respected Sir, The general public depositors, who had invested their savings in Fixed Deposits (FD) of DHFL, a Housing Finance NBFC regulated by the National Housing Bank (NHB). Many of them are Senior Citizens who have invested life savings in these FDs and rely on interest income for the basic financial needs. DHFL’s FD scheme had been continuously rated “AAA” by reputed national rating agencies. In November 2019, DHFL was suddenly put under IBC by giving special powers to RBI. DHFL was being run by an Administrator appointed by the RBI. Repayments to FD holders have been stopped and FD holders have been clubbed together with banks and other big lenders in the Resolution Process by the RBI-appointed Administrator. The FD and NCD holders, are waiting for repayment of their monies since then. In the mean time, the RBI has approved the Resolution Plan (18th February, 2021), which has deprived themselves of their dues. The Resolution Plan is yet to be approved by the NCLT and NCLAT and the Apex Court.

Requests for full repayment have been put forth many times to various agencies, but they have not been considered by citing IBC. Meanwhile, DHFL has also started its lending process without paying FD holders.

We would like to draw your kind attention to the following:

Section 29 of the NHB Act safeguards repayments to public depositors by any Housing Finance Company to continue its business. DHFL is very much a going concern and doing business even now.
Public FD holders are not lenders and they should not be clubbed with banks and financial creditors in the resolution process under the IBC. There is no precedence of such clubbing of FD holders of an NBFC.
IBC, or any Act, is meant to prevent any activity which is against public interest. We request your kind self to keep in mind that the public interest must be served. Small public depositors would like to lose their life savings due to the newly introduced IBC, which otherwise is safeguarded by the prevailing NHB Act.
The small public depositors, are not powerful enough to negotiate and decide the resolution process. Also, the DHFL FD and NCD-Holders cannot bear any haircut or delay in payment like banks and big lenders.

We humbly request your kind self to direct the following to the NCLT, i. De-club the FD holders from the lenders and financial creditors in the resolution process of DHFL. ii. Repay full amount with interest till date to all the matured FDs immediately. iii. Make provision of full repayment to FDs which are yet to mature, as and when they mature, in the resolution process of DHFL which will be binding on the prospective future owner of the on-going company.

As the President of our country and the protector of the constitution of our country, our hopes lie on you to prevent FD and NCD-holders’ sufferings and unfair treatment under the IBC in the context of catastrophic pandemic and anthropogenic glocal heating.

With highest regards,