Government orders SFIO investigation against crisis-affected DHFL
New Delhi, November 1 () The government ordered an investigation by SFIO about alleged financial irregularities in the mortgage lender DHFL after finding cases of suspected diversion of funds, according to a source.
Dewan Housing Finance Ltd (DHFL) was under the scanner following allegations that the company had diverted bank loans worth Rs 31,000 million through layers of phantom entities.
The Ministry of Corporate Affairs carried out a detailed examination of the accusations of financial irregularities against the promoters of the company through the Companies Registry (RoC).
The RoC report indicated suspicion of diversion of funds in the company, after which the ministry requested the Office of Investigation of Serious Fraud (SFIO) to investigate the case, according to the source.
On October 29, a senior official said there was enough reason to refer the DHFL issue to the SFIO. The research agency is under the ministry.
On the other hand, a forensic audit conducted by KPMG would have found a massive diversion of funds by the promoters. DHFL, the third largest mortgage lender in the country, had sought a lifeline of Rs 15,000 million from the lenders at the end of the resolution plan, which may also include recovering 51 percent of the company's capital by converting its debt in capital RAM BJ ANS ANS