Court Grants DHFL Insolvency Immunity
A Mumbai court has terminated the money laundering case against Dewan Housing Finance Corporation Limited (DHFL) in connection with the Yes Bank scandal. The decision hinges on Section 32A of the Insolvency and Bankruptcy Code (IBC), which grants immunity to a corporate debtor once its resolution plan is approved. This provision allows companies undergoing insolvency to make a clean break from past liabilities, fostering a new start under new management.
The case stemmed from allegations of a quid pro quo between former Yes Bank MD and CEO Rana Kapoor and DHFL’s promoters, Kapil and Dheeraj Wadhawan. The Enforcement Directorate (ED) had accused Yes Bank of investing ₹3,700 crore…