Mumbai Court Clears DHFL of Money Laundering Charges Amidst Insolvency Shield

Mumbai's special court has discharged Dewan Housing Finance Corp Ltd (DHFL) of involvement in a Rs 5,050 crore money laundering case, granting the company statutory immunity under the Insolvency and Bankruptcy Code (IBC) due to its new management. The court, however, clarified that this immunity does not protect individuals previously involved in the case.

Special PMLA Court Judge RB Rote emphasized that, following a successful resolution process under IBC, DHFL, as a corporate debtor, is not liable for past offenses. The court cited significant precedents from the Supreme Court, ensuring a clean slate for the company's new management while holding previous directors accountable for their actions.

The Enforcement Directorate highlighted that Yes Bank's co-founder Rana Kapoor and former DHFL promoters Kapil and Dheeraj Wadhawan are still suspects, facing charges related to kickbacks and undue financial benefits, despite DHFL's successful insolvency resolution and subsequent merger with Piramal Group in 2021.