In a bid to safeguard people's savings in their provident fund accounts, the Employees' Provident Fund Organisation (EPFO) will seek an early redemption of about Rs 700 crore worth of bonds of debt-crisis hit Dewan Housing Finance Limited (DHFL), Mint reported on Wednesday.
EPFO will exercise an early exit option to redeem investments made in 10-year bonds of DHFL that mature in 2024, Prabhakar Banasure, a member of the finance investment committee of EPFO told Mint.
“Of the total Rs 1,300 crore bond investments (in DHFL), we are yet to recover Rs 700 crore. Though the company has promised to pay back the investments, it is tough to give a timeline right now," Banasure told the daily.
The investment committee of the retirement fund manager has met four times since mid-June to discuss ways to recover investments. EPFO has redeemed Rs 201 crore in two tranches from DHFL after having two rounds of talks with the housing finance company, Mint reported citing official documents and sources in the know.
“Initially, EPFO thought of going to the debt recovery tribunal against DHFL and it was discussed in one of the meetings of the investment committee. But before that it called the officials of the firm who promised to pay a part of the amount," one of the sources told the daily on the condition of anonymity.
The retirement fund manager is also struggling to recover about Rs 574 crore of its bond investments in the debt-laden Infrastructure Leasing and Financial Services (ILFS), the report added.
Comments sought from DHFL left unanswered till press time, however, a company executive told Mint on the condition of anonymity that all promises made will be honoured.
First Published: IST