You are here: Home » Companies » News
Business Standard

DHFL case: Bogus transactions of Rs 1,864 crore unearthed, says report

According to the report by the transaction auditor, the concerned transactions occurred between FY17 and FY19

DHFL | Dewan Housing Finance DHFL

Subrata Panda  |  Mumbai 


The transaction auditor appointed to mortgage lender Dewan Housing Finance (DHFL) has discovered that certain agreements entered into by the lender at the time of selling its stake in Pramerica Life Insurance Company to Investments, as well as certain inter-corporate deposits (ICDs), were undervalued and of fraudulent nature. ‘

According to the transaction auditor’s report, preliminary estimation places the monetary impact of the concerned transactions at Rs 1,864.84 crore — comprising a principal amount of Rs 1,739.57 crore and accrued interest of Rs 125.27 crore — as the outstanding in firm’s books as of November 30, 2019. Further, it said the notional interest loss was to the tune of Rs 58.34 crore owing to the lower interest rate charged while giving ICDs, and Rs 227.66 crores transferred in the form of ICDs and used to repay a promoter-linked entity.

The administrator has filed an application in the National Company Law Tribunal (NCLT) against 10 respondents, including Kapil Wadhawan, Dheeraj Wadhawan, Aruna Wadh­awan, Wadhawan Global Capital, ICD entities, and certain other entities reported by the transaction auditor.

According to the report by the transaction auditor, the concerned transactions occurred between FY17 and FY19. was the first financial services company to be admitted under the IBC. The mortgage lender reported pre-tax profit of Rs 92.81 crore in the quarter ending June 2020 (Q1FY21), compared to a loss of Rs 198.85 crore during the same period in the last financial year.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 07 2020. 00:18 IST