Edelweiss Financial Services arm moves court to recover dues from DHFL

Edelweiss Financial Services on Thursday said its subsidiary has approached the Bombay High Court to recover dues from debt-laden DHFL. The company has approached the court through its asset management subsidiary.

"Our subsidiary Edelweiss Asset Management Ltd (which has various schemes of mutual funds) has approached the Bombay High Court for recovery of principal and interest dues from DHFL," it said in a regulatory filing on Thursday. The company said that its action is in accordance with other peers in the industry.

"The company has a very small exposure. The overall exposure is less than Rs 70 crores. Many other companies have moved court. Whatever the company is doing is in the interest of the shareholders," according to a source. Dewan Housing Finance Corporation Ltd (DHFL) is in the eye of a storm after a report that the company through layers of shell companies allegedly siphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore.

The stock of Edelweiss traded 0.27 percent up at Rs 73.05 on BSE. DHFL plunged 9.21 percent to Rs 23.65.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)