Delhi Government Considers Winding Up Loss-Making DFC Lending Agency
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News18•24-01-2026, 23:15
Delhi Government Considers Winding Up Loss-Making DFC Lending Agency
- •The Delhi government is considering winding up its lending agency, Delhi Financial Corporation (DFC), due to its severe financial sickness and mounting losses.
- •DFC, established in 1967, provided loans to MSMEs and the service sector but has faced long-standing financial constraints.
- •The corporation's share capital has been eroded, with accumulated losses reaching Rs 42 crore and a negative net worth of Rs 15 crore.
- •DFC is unable to repay an Rs 80 crore loan owed to the Delhi government by September 2025 and has ceased its primary lending function, disbursing no new loans in 2023-24.
- •The board of directors noted the acute financial constraints, and officials see little chance of resurrection even if the outstanding loan is waived.
Why It Matters: Delhi government may close DFC due to mounting losses and inability to repay an Rs 80 crore loan.
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