homelegal News

Mutual funds, SEBI move Delhi HC, challenge interim order allowing non payment of dues by Indiabulls Housing

Mutual funds, SEBI move Delhi HC, challenge interim order allowing non-payment of dues by Indiabulls Housing

Mutual funds, SEBI move Delhi HC, challenge interim order allowing non-payment of dues by Indiabulls Housing
Profile image

By Ashmit Kumar  Apr 28, 2020 1:08:11 PM IST (Published)

AMFI and IDBI Trusteeship have moved the division bench of the Delhi HC, seeking a stay of the interim order allowing Indiabulls Housing to not discharge dues payable to NCD holders.

The Association of Mutual Funds in India (AMFI) and IDBI Trusteeship have moved the division bench of the Delhi HC, seeking a stay of the interim order allowing Indiabulls Housing to not discharge dues payable to Non-Convertible Debenture (NCD) holders.

Recommended Articles

View All

Market regulator, Securities and Exchange Board of India (SEBI), has also challenged the interim order granting protection to Indiabulls Housing.
The interim order of the Delhi HC, now under challenge, had directed that no coercive action shall be taken against Indiabulls Housing for non-payment of NCD dues.
In effect, the Delhi HC order, allowed the NBFC to not make the payments that become due till May 19. The debenture holders include, primarily, mutual fund houses.
Indiabulls Housing had submitted, before the single judge bench of the Delhi HC, that the RBI had issued a moratorium circular on Mar 27, allowing financial institutions like Indiabulls Housing to grant a moratorium on installments that become due between Mar 1 and May 31.
Indiabulls Housing had argued that owing to such regulatory action, it had become “impossible” to effect recoveries of debts owed to it by various institutions.
The inability to recover funds, Indiabulls Housing had argued, directly impacted the ability of the NBFC to discharge dues payable by it, including to fund houses holding NCDs issued it.
Meanwhile, the plea by AMFI, IDBI Trusteeship and SEBI are likely to dispute the claims of Indiabulls Housing, by arguing that the RBI circular does not affect the liabilities arising from NCDs.
The division bench of the Delhi HC, which was due to the appeals today, has scheduled the hearing for April 29, after one of the judged had recused himself from hearing the case.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng