The Central government will soon order a Serious Fraud Investigation Office (SFIO) probe into the alleged financial irregularities at debt-ridden mortgage firm Dewan Housing Finance Corporation (DHFL) after a report by the Registrar of Companies (RoC) indicated fund diversion, a source said.
The Mumbai office of the RoC, earlier this year, had initiated a detailed examination into the alleged financial irregularities, including fund diversion, by DHFL promoters. The RoC submitted its report on DHFL to the Ministry of Corporate Affairs (MCA) a couple of days ago, an official said.
There is a good enough reason to consult the SFIO, the official said, adding that the report indicates diversion and siphoning of funds. The matter will be referred to the agency under the MCA
in the next few days, the official added.
DHFL came in the eye of storm after a report suggested that the company, through layers of shell companies, allegedly siphoned off Rs 31,000 crore out of total bank loans of Rs 97,000 crore.
Following the allegations, the Mumbai office of the RoC started looking into the matter and found that
certain offices that were reported as shell companies were not found at their given addresses.
Under the Companies law, the MCA has powers to take various actions against in case of suspected violations, including inspection of the books of accounts.
A forensic audit, separately done by KPMG, has also reportedly found massive fund diversion by the promoters, a development which may make lenders averse for revival of the company.
The mortgage lender had sought a Rs 15,000-crore lifeline from the lenders as they finalise the resolution plan, which may also include picking up 51 per cent equity in the company by converting their debt into equity.
KPMG has submitted a draft report to the lenders, which has reportedly found that DHFL promoters
had diverted nearly Rs 20,000 crore of bank loans to related entities.
Under the draft resolution plan, the lenders would pick up 51 per cent in the third largest mortgage lender by converting a part of their debt into equity.