Koovs Plc said today that it would apply to place the online fashion retailer into administration as Indian billionaire Kishore Biyani’s Future Lifestyle Fashions failed to invest a further 6.5 million pounds ($8.34 million), Reuters reported. Koovs said that it could not get alternative funding and expects its assets to be bought from the administrator by a company connected to the Koovs’ largest secured creditor and chairman Waheed Alli, ensuring the continuation of the operating business.

In a major development, the RBI-appointed Administrator for the beleaguered Dewan Housing Finance Ltd (DFHL) on Thursday asked all its fixed deposit and non-convertible debenture holders to file their claims before December 17, The Economic Times reported. The move comes ahead of the Supreme Court hears a group of investors who have moved it on the matter, and barely three days after the National Company Law Tribunal's Mumbai bench admitted the RBI's application for initiating insolvency proceedings against the cash-strapped firm, and permitted it to go ahead in the matter.

Indian Prime Minister Narendra Modi’s government is considering easing lending rules for shadow banks, according to people familiar with the matter, a move that would give the cash-starved financiers access to funds, Bloomberg News reported. Modi’s cabinet is likely to discuss allowing state banks to provide so-called credit enhancement against securities rated BBB+ to non bank financiers, the people said, asking not to be identified before a public announcement. That’s the fifth level below what’s permitted under the current plan.

Infrastructure Leasing & Financial Services Ltd., the beleaguered infrastructure financier, reported an annual loss after writing off some investments and advances that it doesn’t expect to recover, Bloomberg News reported. The troubled shadow bank announced a loss of 225.4 billion rupees ($3.15 billion) for the financial year ended March, compared with a profit of 3.32 billion rupees in the previous 12 months, according to an exchange filing. Its total income during the year more than halved to 8.24 billion rupees.

Shares of Dewan Housing Finance (DHFL) hit lower circuit on Tuesday after the insolvency court accepted bankruptcy proceedings against it, The Economic Times reported. DHFL became India’s first non-banking finance company to face insolvency proceedings after the Reserve Bank of India took the company to the Mumbai bench of the National Company Law Tribunal, which admitted the insolvency resolution plea on Monday.

An Indian shadow lender whose debt problems are being closely watched amid a broader industry crisis is facing pushback on its restructuring plan, Bloomberg News reported. Some creditors to Altico Capital India Ltd., which focuses on real estate lending, are concerned that the absence of fresh equity in the proposal fails to address a dramatic surge in bad loans, said two people familiar with the matter, asking not to be identified because the information isn’t public.

Yes Bank Ltd., an Indian lender caught in the country’s deepening shadow banking crisis, boosted its target for a capital raising to $2 billion after receiving commitments from new investors, Bloomberg News reported. The nation’s fourth-largest private lender said its board signed off on the capital increase, which is higher than the previous figure of $1.2 billion, at a meeting on Friday. Investors including Canada’s Erwin Singh Braich, SPGP Holdings and Citax Holdings Ltd.

Rating agencies have soured on India Inc as a credit crunch leaves businesses struggling to raise funds and pay debts, pushing default rates to their highest in five years, the Financial Times reported. Moody’s has a negative outlook on more than half of the non-financial companies it provides ratings on, its highest level in 10 years. The New York-based agency, which in early November downgraded its credit outlook for India to negative, has lowered its outlook for oil and gas companies such as Bharat Petroleum and information technology groups Infosys and Tata Consultancy

The Reserve Bank of India has filed an application to begin bankruptcy proceedings against shadow lender Dewan Housing Finance Corporation Ltd (DHFL), it said here on Friday, Reuters reported. DHFL, once one of India’s top shadow lenders, owes its creditors - which include mutual funds, banks, pension funds, insurance firms and retail investors - close to 1 trillion rupees ($13.93 billion). The country’s shadow banking sector, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS last year.