Delhi Financial Corporation Faces Shutdown Amid Financial Distress

The Delhi Financial Corporation (DFC) is on the brink of closure due to severe financial losses, with Rs 42 crore in accumulated losses and an eroded capital base. With operations halted in 2023-24, the government may consider winding up this once-crucial lending agency.

The Delhi Financial Corporation (DFC) teeters on the verge of closure due to significant financial setbacks, officials reported on Saturday. Struggling with mounting losses, the once-vital lending agency is now facing insolvency.

Primarily responsible for funding micro, small, and medium enterprises, DFC hasn't disbursed new loans in 2023-24, marking a halt in its operations. Officials revealed that accumulated losses have reached Rs 42 crore, and the corporation's net worth is experiencing negative growth.

In light of these challenges, the Delhi government is considering winding up the DFC. The agency owes Rs 80 crore to the government, and without prospects for recovery, waiving the outstanding loan may be the only option.