India’s National Company Law Tribunal (NCLT) ordered to initiate personal insolvency proceedings against guarantor Dheeraj Wadhawan, the former promoter of Dewan Housing Finance Corporation Ltd. (DHFL).

The Mumbai bench of the NCLT admitted the financial creditor Union Bank of India’s application against Wadhawan, who had provided a personal guarantee on the loans availed by bankrupt DHFL, according to the tribunal order dated 20 March.

The matter is related to the alleged default of 3,958 crore rupees ($474 million) by the bankrupt DHFL, which was later acquired by Piramal Group and merged with Piramal Capital & Housing Finance Ltd.

The NCLT also directed Resolution Professional Devendra Mehta to issue a public notice and invite claims from all creditors within 21 days.

The tribunal also ordered Wadhawan to prepare a repayment plan in consultation with the resolution professional, containing a proposal to the creditors for restructuring of his debts.

The order was passed by Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan.

Note: $1 = 83.4488 Indian rupees

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