Topsy-Turvy Indian Governmentality: The Curious Case of the DHFL Scam

Posted on 12/03/2023 (IST 23:58 hrs)

Updated on 18/03/2023 (IST 12:40 hrs)

Here are some posters on the DHFL scam that throw light on its ambiguities, ambivalences, contradictions, irregularities, illegalities, void spaces and above all, the tale of politically motivated transformation of an ongoing, solvent, profitable company to an insolvent, bankrupt company.

Though the former owners of the DHFL donated (as far as we know) 28+ crores to the ruling party of India, i.e., BJP, for their survival, yet they were blow off by the governmentality of the ruling government.


These posters should be liked, commented on, shared and reblogged in order to reach the victims to this unprecedented disaster in all Indian history.

Mr. Ajay Piramal, an alleged insider trader, committed contempt of court (There are broadly two categories of contempt of court: being disrespectful to legal authorities in the courtroom, or willfully failing to obey a court order) in the DHFL Case on two occasions: (a) ignoring NCLT First order (19/05/2021) for reconsidering Mr. Wadhawan’s full repayment plan and (b) not reconsidering the resolution plan itself as per the NCLAT Second order (27/01/2022). It is only possible in the regime of autocrats. They are trying to appropriate the functions of the judiciary by poking their nose in the Collegium System, making death threat to the judges etc. Is it a crony-autocracy?


  • Piramal’s ownership claim is based solely on the NCLT’s approval order (07/06/2021), though Piramal totally ignored the NCLT First Order (19/05/2021) by not answering the pertinent questions asked by the latter within the stipulated time period. It seems that the approval order is somewhat forced on the part of the NCLT. It is paradoxical enough that the same lowest quasi-judicial body’s two verdicts were once neglected (19/05/2021) and then accepted (07/06/2021) by the Piramal CHF (aka Piramal Finance), though NCLT is considered as the highest Adjudicating Authority under the IBC (2016). Why did they act like an equivocator?

Because, NCLT and NCLAT are perfectly aware of their limitation (“Error in jurisdiction vs. Excessive Jurisdiction” VIEW HERE ⤡ As reported on 17th July, 2020 ©Law Street India) as the lowest and lower quasi-judicial bodies.

However, both these quasi-judicial bodies had perfectly pointed out the irregularities/illegalities of the RP as presented by the Piramal CHF. Here are some excerpts from the NCLT RE-ORDER, 07/06/2021 (pp. 75-77) on the basis of which, (it is strange enough) Mr. Piramal has occupied the DHFL. The following discourse is a living instance of our claim that Mr. Piramal forcibly trespassed the threshold of the DHFL.

“With regard to the claims of more than 70,000 Fixed Deposit
Holders, Lakhs of Employees of UP State Power Sector
Employees Trust, Board of Trustees of UP Power Corporation
Contributory Provident Fund Trust, investment by Capgemini
Business Services India Ltd, Employees Provident Fund
Trust, other claimants falling in the similar category, We have
heard the arguments from both the sides at length and we are
of the considered view that considering the number of small
investors running into lakhs, senior citizens, who had
deposited their hard earned savings, have to meet various
expenses especially in this Covid 19 Pandemic situation, loss
of jobs to number of depositors, to meet other essential needs
the employees of the PF Trust which is the money they would
get at the time of , after superannuation. Therefore, we are of
the considered view that they should get a fair, increased
share money out of the Resolution Plan. Since FSP is a
different nature of company than a normal Corporate Debtor,
where in thousands, Lakhs of Small Investors invest their
funds for a reasonable interest income to take care of their
needs. Its generally considered that investment in Fixed
Deposit, NCDs are low risk investment than investing in
Equity Shares therefore these small investors should not be put
to more risk, take more hair cut than the stronger financial
institutions viz Banks, Financial Institutions and accordingly
for this limited purpose we direct the COC to reconsider their
distribution method, distribution amongst various members of
CoC within two weeks from today and report the same to this
Adjudicating Authority.”

“With regard to the decision on distribution to this public
depositors, Fixed Deposit holders, subscribers to NCDs we
also suggest, request the COC to reconsider their grievances,
plights and they did not oppose the resolution plan and their
request is only to enhance the percentage of payment made in
the plan and the same should be increased to the level of
Secured Financial Creditors i.e. approximately 40% the
Financial Creditors would be getting in this plan. We further
make it clear that there is no additional monetary obligation
for the Successful Resolution Applicant to pay anything more
than what it has committed in the Resolution Plan i.e an
amount of Rs. 37,250 Crores. It is only an inter se distribution
of resolution money amongst various creditors. Therefore,
with regard to the manner of distribution, the method of
distribution between various creditors viz Public Depositors,
Fixed Deposit Holders, NCD Holders, Small Investors,
Employees Provident Fund Trust, Army Group Insurance
Fund etc we request, suggest the CoC to reconsider the same
so that lakhs of small investors would be benefited.”

“Further ARMY Group, did not challenge, oppose the plan,
only seeking a sympathetic view of CoC, Resolution
Applicant thereby thousands of families, widows, children
can be saved. Their investment can be treated as a separate
class, subclass of creditors. Hon’ble NCLAT vide order
dated 19.09.2020 already treated it as a separate class.
Therefore, we suggest that since the total resolution plan
amount is Rs. 37,250 Crores the admitted claim of the Army
Group Insurance Fund is only Rs.39 Crores which is 0.0001%
of the total plan amount therefore we suggest the CoC to
reconsider and pay the full admitted claim amount of Rs.39
Crores considering the nature of duties performed by them
who are protecting the Nation, sacrificing their lives, difficult
working conditions and human service to keep peace of the
country it would be appropriate for the members of the CoC
to reconsider and to repay their entire admitted claim without
any hair cut thereby expressing our deep concern, gratitude
and respect to the Army Personnel. Further Ld. Counsel
appearing for the Army Group submitted that no insurance
Company is extending insurance to Army personnel so it’s a
scheme devised by them with the approval of the Govt.,
Ministry of Defence and their deduction is made from their
monthly salary and applicable to all the rank of employees i.e
from bottom to top.”

NCLT RE-ORDER, 07/06/2021 (pp. 75-77) nclt-re-order Download NCLT RE-ORDER
  • As the NCLAT says in its second order (27/01/2022) that it is beyond their purview to challenge the RBI-appointed CoC’s approved RP, they are pointing out the lacuna and loopholes of the RP in their “Analysis” and “Order” sections of the verdict.
  • Both the NCLT first order and NCLAT second order are eye-openers for this particular scam committed by the RBI-appointed CoC for DHFL and Mr. Piramal.

So, the complexities of the legal matters are proliferated due to the predetermined, biased, prejudiced (cf. NCLT First order, page no. 10; NCLAT Second order, page no. 5, page no. 51) mindset of the RBI-appointed CoC for DHFL.

to be continued…

See Also:




Do you have faith in the Contemporary Indian Judiciary? VIEW HERE ⤡


  1. Reblogged this on debaprasad and commented:


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    Reblogged this on Akhar Bandyopadhyay and commented:


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  6. Reblogged this on DHFL Scam and commented:

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  7. ravindramahidhar says:


    Highly appreciable job done by you.

    I hope, this will surely act as EYE OPENER to all concerned authorities & ruling party.

    Now they MUST realize their blunder mistake which is UNPARDONABLE & ILLEGAL and take suitable corrective actions to arrange REPAYMENT of our hard-earned money alongwith interest (till the date of payment) and compensation.


    Liked by 4 people

  8. ravindramahidhar says:

    Ruling party & concerned authorities are TOTALLY EXPOSED. They can do all ILLEGAL work IN ORDER TO GET DONATIONS/BRIBES/TO GET PROMOTIONS/ SAVE THEIR JOBS.

    Liked by 4 people

    1. Kirit Doshi says:

      Kindly help us i have lost my all Life saving in d h f l related AAA company of India by all govt agencies


  9. ravindramahidhar says:


    When concerned leaders/ministers of ruling party & Piramals KNOWS that they have DELIBERATELY done wrong, when NCLT & NCLAT is silent even after knowing Piramals have ignored their orders and deprived FD holders & Wadhwans to get their legitimate dues/rights, when SC is DELIBERATELY DELAYING resolution of DHFL related cases and opted to keep silence by throwing our cases in COLD STORAGE, when all opposition parties are turning their deaf ears to all our appeals & exposed MISDEEDS OF RULING PARTY,
    WHO WILL COME TO RESCUE ALL OF US & WHEN ? Now, many of us are loosing patience & trust on entire political & judicial machinery.


    Liked by 4 people

    1. Absolutely right. In fact, all the four pillars of democracy ‘ve collapsed during this regime of terror. This leads to “legitimation crisis” of the crony government


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