DHFL Victims in the Laboratory State of IBC: “Litmus Test”?

DHFL Victims in the Laboratory State of IBC: “Litmus Test”?

Posted on 15/03/2024 (GMT 16:10 hrs)

This post is (un-)dedicated to late Mr. Arun Jaitley, the father of legalized corruption in India, the harbinger of ill-conceived IBC (2016)

In the current atmosphere of the revelation of the Electoral Bonds Scam by the present ruling party, the BJP, it seems pertinent to bring forth a very brief evaluative remark on the DHFL scam, the biggest financial fraud India ever witnessed, with its dubious resolution process, a scam caused by the greedy itching palms of the BJP itself!

After the NCLT’s first order given on 19th May 2021 that strived to change the terms of the resolution plan through a request to the DHFL-CoC for reconsidering DHFL’s erstwhile promoter Kapil Wadhawan’s 100% repayment Settlement Proposal, the enraged DHFL-CoC (especially its lenders) stated the following in response:

“Lenders said the NCLT order may set a bad precedent, with more promoters moving the court to consider their offer.”

“That if the impugned orders were allowed to operate, it would be extremely prejudicial as it creates a new process, which is contrary to the express provisions of the Code and, if allowed, the CIRP will be never ending where parties will be permitted to keep making offers without regard to sanctity of the process or timelines, including after CoC has exercised its commercial wisdom and approved a plan, which has been submitted by an eligible resolution applicant in compliance with the Code,” DHFL’s lenders said in their appeal.”

SOURCE: Appeals Court Stays Order on Wadhawan VIEW HERE ⤡ (As reported on 26th May, 2021 ©The Mint)

The lenders said that the verdict of the NCLT would set a “bad precedent” (if their first order was being followed), since the DHFL case was the first case to go under the experimental, ill-conceived IBC (2016; amended multiple times). 

“Bad precedent”? Such statement made by the lenders is not only irrational or illogical, it is also ridiculously idiotic! Be it the first or last precedent, we must call spade a spade, irrespective of whether it is good or bad!

An illegal resolution process does not become legal solely in order to legitimize or validate the newly-introduced IBC! Why is the RBI-appointed CoC deliberately providing help to the present politico-legal administration and their engineered codes/laws/policies by the help of their wis(h)dom (The CoC can do no wrong? ‘Wis-h-dom’ of the CoC is presupposed?⤡)?  

The DHFL victims as “guinea pigs”⤡ are suffering today as penniless paupers in the state of utter hopelessness, as financially abused pariahs in despair within the dilapidated Indian economy….!!

Thus, the DHFL resolution process was nothing more than a litmus “test” case for legitimizing the IBC as introduced by the present ruling party:

DHFL insolvency a test (and very difficult) case for the IBC VIEW HERE ⤡ (As reported on 21st November, 2019 ©Moneycontrol)

DHFL a test case whose successful resolution is critical for banking sector VIEW HERE ⤡ (As reported on 12th January, 2021 ©Business Standard)

‘Test case’ shemozzle means Adani still in the race for bankrupt finance company VIEW HERE ⤡ (As reported on 26th May, 2021 ©Adani Watch)

From a social scientist’s perspective, this entire process could be viewed as one where the DHFL victims were turned into laboratory test-subjects, who were objectified through a ritual of pre-determined resolution process, a mode of anatomo-bio-political codification. This is part of the grand design for class polarization, where the middle class (including the financial bourgeoisie) shall be relegated to the class of poorest of the poor by means of an imposed proletarianization tactic.

The entire saga of DHFL belongs to the paradoxical sphere of chaosophical irrational rationality, which is included as part of the crony capitalist state-corporatocracy that runs by the dictates of so-called “rational”, organized, institutionalized, funded “science” (which has become equated with technocracy)!