Chandigarh Commission Slams Financial Firms for DHFL Debenture Lapses

The Chandigarh Consumer Disputes Redressal Commission delivered a significant verdict on Wednesday, August 6, 2025, holding several financial entities accountable for deficient services related to Dewan Housing Finance Corporation Limited (DHFL) debentures.

Catalyst Trusteeship Ltd was ordered to pay a Chandigarh resident Rs 2,04,880, along with 9% interest, for its shortcomings.

The commission also penalized Credit Analysis and Research, and Brick Works Ratings India, each with a Rs 1 lakh fine for similar failures. An additional Rs 33,000 was levied on each rating agency to cover litigation costs.

This landmark ruling underscores the growing need for greater transparency and accountability within the financial sector, particularly concerning the protection of investor interests in complex investment products like debentures. The case serves as a strong warning to financial institutions to prioritize due diligence and ethical practices, impacting investor confidence and market stability.

Karanveer Sharma

A dedicated journalist and legal expert with a passion for uncovering the truth and advocating for justice. With hands-on experience in investigative journalism, legal research, and case analysis, I possess a strong ability to break down complex legal and societal issues into clear, impactful narratives. My work is driven by a commitment to transparency, integrity, and empowering people with accurate, insightful information.