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Mar 153 min read

The “Goodwill” (?) of R. Subramaniakumar, the ex-Administrator of DHFL

The Impact on “Goodwill”: When ex-DHFL Administrator R. Subramaniakumar Joined the RBL Bank

Posted on 15/03/2024 (GMT 16: 58 hrs)

The truth is that one’s goodwill is important enough to maintain one’s position in the public sphere. The “goodwill” of Mr. R. Subramaniakumar, the former Administrator in the DHFL resolution process, was jeopardized after the DHFL scam. This was because of his involvement in the resolution process, which was allegedly in favour of a predetermined successful bidder, viz., Mr. Ajay Piramal, from the very onset. The entire resolution for an AAA-rated NBFC that was profitable, ongoing and solvent— was done as a litmus test for the ill-conceived IBC.

R. Subramaniakumar, accompanied by officials in the Committee of Creditors (CoC) for DHFL such as Charu Sandeep Desai, caused huge haircuts for the DHFL small depositors. Not only that, the shares of the DHFL were delisted from the BSE and NSE on 14th June, 2021.

For more information on R. Subramaniakumar’s role as administrator in the CoC for DHFL, view the following URLs:


It is to be noted that a Resolution Professional comes within the meaning of ‘Public Servant’ under Section 2(c) of the Prevention of Corruption Act, 1988 and Section 233 of IBC does not protect where he has been apprehended red-handed with the bribe amount – Sanjay Kumar Agarwal Vs. Central Bureau of Investigation, Anti-Corruption Bureau, Dhanbad – Jharkhand High Court.

It is also to be duly noted that the old promoters of the DHFL, Mr. Kapil and Dheeraj Wadhawan, were not allowed to participate in the RBI-appointed CoC’s resolution process following the (controversial and ineligible) IBC U/S 29A ⤡, even though the Hon’ble NCLAT, New Delhi, declared: “Suspended Director, who was representing the Corporate Debtor and has submitted the Settlement Proposal is entitled to participate in deliberation and negotiation undertaken by the CoC.” (in Sanjeev Mahajan Vs. Indian Bank (Erstwhile Allahabad Bank) & Anr.) 

We are reminded of the known fact that Bankruptcy will not void personal guarantees: Hon’ble Supreme Court VIEW HERE ⤡ (As reported on May 22, 2021 ©The Times of India). Let us look at the rules and regulations of IBC (2016) for such deliberate avoidance of the Wadhawan brothers (“former” promoters of the DHFL) by the CoC to hand the DHFL over to Mr. Ajay Piramal, a hostile bidder and an alleged insider trader ⤡, which appears to be a case of adverse possession⤡ or squatter’s right.

The RBI-appointed CoC administrator and the representative of the FD-holders had swallowed the DHFL victims’ money to continue the expensive Resolution Process. If they are ever to be sued by the DHFL victims, they would fight against the victims by utilizing their money. As public servants, what they have done is probably a case of legal conflict.  

Consequently in June 2022, R. Subramaniakumar was appointed as the CEO for the RBL Bank. With his appointment, the RBL shares fell to rapid lows. This was caused due to his disputed, questionable, dubious role in the DHFL resolution process that has set a bad past “track record” for him, thus making the brokers/shareholders lose faith in him, thereby causing a downfall of his goodwill in the market realm.


As of today (15/03/2024, GMT 16:45 hrs), the RBL Bank’s share price is quite poor:

Moreover, the chaosophical share market’s condition is not only reflected in the RBL Bank’s poor state of affairs, but in the fragile state of major shares itself. The UN-stability of stable downgrading reflects the general bankrupt state of the Indian economy under the BJP regime.

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