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UP Power Employees Demand Guarantee By State Govt On PF

UP Power Employees Demand Guarantee By State Govt On PF

Lucknow: Uttar Pradesh power employees joint action committee on Wednesday demanded the state government to issue gazette notification for taking responsibility for the payment of the Provident Fund (PF) of the employees as the Reserve Bank of India has superseded the board of the DHFL and appointed an administration to run the management of the company.

The Reserve Bank has superseded the board of DHFL owing to governance concerns and defaults by the housing finance company in meeting various payment obligations.

Shailendra Dubey, convener of the action committee said that the UP government is now left with no option but to issue a categorical undertaking for the payment of the provident funds and contributory fund of the power employs. UP power employees provident fund trust has invested a total, of Rs 4100 crore as fixed deposit in scam tainted housing finance company.

The DHFL has paid some amount on maturity of the fixed deposit by power employees PF trust, it still owes over Rs 2,100 crore to power employees trust. The DHFL has defaulted in payment of Rs 15,000 crore to fixed deposit holders, Rs 38,000 crore to PSU banks. The total debt on DHFL is whopping Rs 88,000 crore which it owes to banks, mutual funds, pension funds, National Housing Bank, depositors and fixed deposits.

The RBI has appointed R Subramaniakumar, former managing director and chief executive of Indian Overseas Bank (IOB), as the administrator. This would be the first housing finance company (HFC) that is on the path to bankruptcy tribunal under new rules 'Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, notified on November 15. The move comes after the Centre on November 15 empowered the RBI to refer stressed non banking finance companies and housing finance companies having assets worth at least Rs 500 crore to insolvency court under national company law tribunal. UNI

Updated : 21 Nov 2019 9:04 PM GMT
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