Mumbai: DSP Mutual Fund has moved the Bombay High Court against Dewan Housing Finance Corp Ltd seeking to recover Rs 750 million in dues arising from commercial papers issued by the company. The mutual fund, through its trustee, has filed a commercial dispute case against the debt-laden non-banking finance company on Thursday, according to information on the high court website. The high court is yet to hear the case.
DSP MF had an exposure of Rs 1.5 billion to DSP MF through commercial papers maturing on Jun 25, of which Dewan Housing has paid only 50% through part payments last week.
“The legal proceedings are related to the remainder of the dues which were communicated to be paid in the next couple of days,” DSP MF said. The fixed maturity plan of DSP MF, which has invested in the commercial papers of Dewan Housing, will repay the investors in two years from the recoveries made from the company, the MF said in a separate note.
DSP MF also added that the legal proceeding is not initiated to disturb the debt resolution process between the lenders. The lenders to Dewan Housing have signed an inter-creditor agreement to chalk out comprehensive resolution plan for the company.