KPMG forensic audit finds fund diversion from DHFL to promoter-led entities

The forensic audit report said DHFL could not provide a robust and well-defined tracking mechanism for end-use of funds disbursed by the company


A forensic audit conducted by KPMG on Dewan Housing Finance (DHFL) has confirmed siphoning of funds from the beleaguered non-banking financial company (NBFC) to a host of promoter-led entities. The forensic audit report will make it difficult for banks to clear a resolution plan till the company clears itself of these charges, said a banker. The report, reviewed by Business Standard, says KPMG was asked to conduct a special review for the period between April 2015 and March 2019 of DHFL’s books to ascertain end-use of loans taken from public sector banks and identify diversion ...