Govt orders winding up of Delhi Financial Corp
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 in January and has been notified through a gazette notification issued under the State Financial Corporations Act, 1951.
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 to Rs.42 ...
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