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Edelweiss AMC moves HC to recover dues from DHFL

Edelweiss AMC is seeking the appointment of a court receiver and disclosure of all the assets of DHFL.

, ET Bureau|
Oct 10, 2019, 07.39 AM IST
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Mumbai: In fresh trouble for Dewan Housing Finance Corporation (DHFL), Edelweiss Asset Management has also approached the Bombay High Court to recover its dues of around Rs 70 crore.

The suit comes at a time when Reliance Nippon Life Asset Management has already approached the courts against the stressed home financier.

Edelweiss AMC is seeking the appointment of a court receiver and disclosure of all the assets of DHFL. “We are seeking an injunction from paying any unsecured lender,” argued Dinyar Madon, senior counsel for Edelweiss AMC. “They (DHFL) have used hypothecated receivables, which were in our favour and liquidated them and paid to unsecured creditors.”

Iqbal Chagla, a senior counsel appearing for Reliance AMC, argued that it was also a secured creditor and DHFL had given it a cheque of Rs 200 crore that wasn’t honoured. The company is seeking that amount (Rs 200 crore) and doesn’t mind getting the remaining amount later on a pro-rata basis.

Originally, the case was filed by Reliance AMC on September 26 against DHFL to help recover about Rs 478 crore. The company is seeking its dues after DHFL failed to pay against the non-convertible debentures (NCD) the mutual fund house had subscribed.

Ravi Kadam, senior advocate appearing for DHFL, argued that at this point, it can’t pay Rs 200 crore to Reliance AMC because it has to first give money to depositors and pay salaries, as directed by the court.

Prateek Mishra of law firm L&L Partners is representing Reliance AMC and Munaf Virjee, managing partner of ABH Law, is representing DHFL and Kapil Wadhawan in the case. Edelweiss AMC is being represented by Sachin Chandarana of Manilal Kher Ambalal & Co. After hearing arguments from all the parties, Justice AK Menon has reserved his order for Thursday. Bondholders have Rs 41,000 crore exposure to DHFL and banks have Rs 27,527 crore.

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