Top court seeks CBI reply on Piramal Capital and Housing Finance plea in DHFL case

The Supreme Court on Friday sought response from the CBI on an appeal by Piramal Capital and Housing Finance (PCHF) seeking quashing of an FIR that names it along the erstwhile promoters of Dewan Housing Finance Corporation (DHFL), Kapil Wadhawan and Dheeraj Wadhawan.

PCHF has raised a substantial question of law as to whether Section 32A of the Insolvency & Bankruptcy Code, 2016, forbids the subsistence of an FIR and continuation of the resultant criminal proceeding against the resolved corporate debtor (the new management) after successful completion of the corporate insolvency resolution process (CIRP) for offences allegedly committed by the previous management prior to the initiation of the insolvency proceedings.

In September 2021, PCHF had completed the acquisition of bankrupt DHFL for Rs 34,250 crore which includes a cash component and non-convertible debentures.


A Bench led by Chief Justice DY Chandrachud while issuing notice to the investigative agency orally observed that as per the mandate of section 32-A, PCHF had the protection against the prosecution but it would have to cooperate with the investigations that can help the CBI in its probe against the erstwhile promoters of DHFL.