Court Grants Immunity to DHFL in Major Money Laundering Case

In a significant legal development, a special court in Mumbai has granted statutory immunity to Dewan Housing Finance Corp Ltd (DHFL) in a massive Rs 5,050 crore money laundering case, citing provisions under the Insolvency and Bankruptcy Code (IBC). Although DHFL, now under new management, is shielded, individuals involved are not exempt from prosecution.

The special Prevention of Money Laundering Act (PMLA) court, led by Judge RB Rote, underscored that once the resolution plan is approved by the adjudicating authority, the corporate debtor is no longer liable for prior offenses. This legal ruling supports the new management's efforts to dissociate from past misdeeds and progress on a fresh slate.

Despite the company being discharged, the court maintained that immunity under IBC does not extend to former officers or directors who partook in prior criminal activities. Those individuals, including Yes Bank co-founder Rana Kapoor and former DHFL promoters Kapil and Dheeraj Wadhawan, remain accountable and will continue facing legal proceedings.