Shri Ram Nath Kovind
Hon’ble President of India
New Delhi – 110004
Subject: Sufferings of Fixed Deposit (FD) holders due to IBC Act in the Resolution Process of DHFL
We are general public depositors who had invested our savings in Fixed Deposits (FD) of DHFL, a Housing Finance NBFC regulated by the National Housing Bank (NHB). Many of us 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 has since been 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. We, FD holders, are waiting for repayment of our monies since then.
Requests for full repayment have been put forth many times to various agencies, but they have not been considered citing IBC. Meanwhile, DHFL has also started its lending process without paying FD holders.
Sir, we would like to draw your kind attention to the following:
1. 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.
2. 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.
3. IBC, or any Act, is meant to prevent any activity which is against public interest. We request your kind self to see if public interest will be served if we, small public depositors, lose our life savings due to IBC, which otherwise is safeguarded by the prevailing NHB Act.
4. We, small public depositors, are not powerful enough to negotiate and decide the resolution process. Also, we cannot bear any haircut or delay in payment like banks and big lenders.
Sir, we humbly request your kind self to direct the following to the RBI appointed Administrator of DHFL in public interest:
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 company.
As the President of our country and the protector of the constitution of our country, our hopes lie on you to prevent our sufferings and unfair treatment under IBC.
With highest regards,
Dr. Debaprasad BandyopadhyayP.S: The List of signatories are to be found in the following URLs of “GoPetition” website:
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