What is the latest update on the Dewan Housing NCLT bids from Adani Enterprises, PEL and Oaktree?

The bidding for the assets of DHFL under the aegis of the NCLT is increasingly becoming a highly controversial affair. Initially, the original bidders like PEL, SC Lowy and Oaktree had objected to delayed bids by Adani Enterprises. Now, the COC or the committee of creditors has called for final bids on December 14.

As per the terms of the COC, bidders have option to either submit fresh bids or retain the bids they had submitted on 17 November. But the earlier bidders have now threatened to go to court if Adani was allowed to bid for the full assets of Dewan Housing. However, let us remember that eventually it would be the COC view that prevails.

Dewan Housing was a special case of an NBFC being referred to the NCLT by RBI after it began to default on debts due to cash flow mismatch and considering its systemic importance. DHFL has outstanding loans to banks and other creditors to the tune of Rs.88,000 crore. That is being handled jointly by the COC and the NCLT.

In the first round of bidding, SC Lowy bid for the Slum Rehabilitation (SRA) plan while Oaktree Capital and Piramal bid for the total assets of DHFL. However, Adani bid for the wholesale book and the SRA of DHFL. This was followed by a revised bid for total assets of DHFL by Adani as it found the other bids too low. That is what the dispute was all about.