DSP Mutual Fund has initiated legal action against Dewan Housing Finance Corporation for recovery of dues. However, the fund house has said that it has not done anything to disturb the Inter-Creditor Agreement process. According to the fund house, DSP Mutual Fund had an exposure of Rs 150 crore to commercial papers issued by DHFL with scheduled maturity on June 25, 2019.
The fund house said in written communication that DHFL made a part payment of Rs 60 crore on 25th June 2019 (equivalent to 40 percent of outstanding exposure). “Subsequently, DHFL shared a press release on 25th June, stating that the balance amount shall be paid in next couple of days,” says DSP MF.
The fund house says that it received further 10 percent of the total outstanding amount on 29th June; implying 50 percent of dues remaining unpaid. Now, the legal proceedings are related to the remainder of the dues which were communicated to be paid but were not.
“We reiterate that the legal proceedings are not initiated to disturb the ICA process,” the fund house said in the communication.
Unlike banks, mutual funds are not formally bound by the ICA. Debenture holders of DHFL had agreed to sign an inter-creditor agreement in July. Out of 27 banks, 22 have signed the ICA. According to reports, in the past nine months, DHFL has securitized home loan assets worth over Rs 40,000 crore. Bondholders have Rs 45,000 crore of exposure to Mumbai-based DHFL, while high-street lenders have loaned DHFL another Rs 35,000 crore.