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RBI Files Application To Begin Bankruptcy Proceedings Against Dewan Housing

The Reserve Bank of India has filed an application to begin bankruptcy proceedings against shadow lender Dewan Housing Finance Corporation Ltd (DHFL), it said Friday.

DHFL, once one of country's top shadow lenders, owes its creditors - which include mutual funds, banks, pension funds, insurance firms and retail investors - close to Rs 1 lakh crore ($13.93 billion).

The country's shadow banking sector, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS last year.

Central bank said earlier this month it would begin bankruptcy proceedings against DHFL, and superseded the company's board, while appointing an administrator.

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