Union Bank may fill personal insolvency proceedings against DHFL

New Delhi: DHFL may face a personal insolvency proceeding by the Union Bank of India after the government allowed in the personal insolvency proceeding against the promoters. DHFL owes the Rs 3,516 crores to Union Bank of India. 

The Union Bank of India will perform the proceeding on behalf of all banks that have personal guarantees by the Wadhwans. DHFL's total dues owed to financial creditors amounts to Rs 86, 972 cr. And this due includes towards the State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, etc.

The deadline for submission of Expression of Interest (EoI) is to mid-October. The Union Bank of India comes after a letter by the Department of Financial Services in August, asking Public Sector Banks to consider putting in place a mechanism for monitoring the cases which may require initiation of individual insolvency proceedings before the National Company Law Tribunal (NCLT) against personal guarantors to corporate debtors.