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Govt to probe Dewan Housing, takes 'very serious note' of allegations

Dewan rejects allegations that it diverted funds to shell companies to buy assets.


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Sudarshan Varadhan and Aditya Kalra | Reuters New Delhi
The Ministry of Corporate Affairs (MCA) has taken a "very serious note" of allegations of financial mismanagement against Dewan Housing Finance Corp Ltd (DHFL), a government source with direct knowledge of the matter told Reuters on Wednesday.

Investigative media outlet Cobrapost on Tuesday said Dewan diverted funds to shell companies to buy assets, and that firms linked to Dewan's controlling shareholders—the Wadhawan group—made political donations beyond mandated levels.

Dewan, one of India's largest housing finance companies, said the report was unfounded and malicious and that it had engaged lawyers to defend itself.

Cobrapost told Reuters it stood by its reporting.

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First Published: Jan 30 2019 | 7:59 PM IST

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