Delhi Government Winds Up DFC Amid Mounting Losses

In a decisive measure to address spiraling losses, the Delhi government has initiated the winding up of the Delhi Financial Corporation (DFC). A nine-member committee, led by the state finance secretary, is tasked with navigating the entity's closure, as confirmed by official sources on Tuesday.

Established to provide financial support to small and medium enterprises, DFC has faced acute financial constraints, including an erosion of its capital and accumulated losses totaling Rs 42 crore. The inability to repay Rs 80 crore in outstanding loans to the Delhi government further exacerbated the situation.

The committee will manage the realization of dues, asset recovery, liability settlements, and employee management, ensuring transparency and compliance. Once all proceedings are settled, the final dissolution will be formalized through a notification by the lieutenant governor, officials reported.