New Delhi, Feb. 11 -- The Delhi government has ordered the winding up of the Delhi Financial Corporation (DFC), citing its financial non-viability and public interest considerations.

The decision, notified on February 6, follows approval by the Delhi cabinet last month and has been notified through a gazette notification issued under the State Financial Corporations Act, 1951.

The DFC, which extends loans to micro, small and medium enterprises, had been grappling with severe financial stress for a prolonged period. The acute liquidity crunch was formally flagged during a meeting of the corporation's board in November last year.

Board members were informed that DFC's share capital had been fully eroded, with accumulated losses mounting ...