DHFL Case: Auditor Flags Fraudulent Transactions Worth Rs 12,705 Crore
Fraudulent transactions worth Rs 12,705.53 crore took place at debt-ridden mortgage firm DHFL during FY17 to FY19, according to transaction auditor Grant Thornton.
According to the auditor's report, this pertains to certain irregularities in loan disbursements towards the development of two Slum Rehabilitation Authority projects undertaken by the company in the past.
Earlier this year, the administrator of Dewan Housing Finance Corporation Ltd., appointed under the Insolvency and Bankruptcy Code, obtained assistance from Grant Thornton to conduct an investigation into the affairs of the mortgage firm.
Last year, the Mumbai-bench of the National Company Law Tribunal had admitted the company for insolvency resolution.
It had appointed Indian Overseas Bank's former managing director and CEO R Subramaniakumar as the company's administrator.
"As per the Transaction Auditor's report shared with the Administrator, the monetary impact of the above transactions covered under the Application amount to Rs 12,705.53 crore (which includes principal of Rs 10,979.50 crore and accrued interest of Rs 1,726.03 crore), being the amount outstanding in the books of the company as on November 30, 2019," DHFL said in a regulatory filing on Monday.
The entire amount mentioned above along with interest for the remaining period is claimed through the application filed with the NCLT, it added.
As per the report prepared by the transaction auditor, the concerned transactions occurred during financial years 2016-2017 to 2018-19, the filing said.
Based on the report, an application has been filed with the NCLT, Mumbai against 40 respondents, including Kapil Wadhawan, Dheeraj Wadhawan, Darshan Developers Private Limited, Sigtia Constructions Private Limited and certain other entities as reported by the transaction auditor.
Last year, the Reserve Bank of India sent the troubled mortgage lender DHFL for bankruptcy proceedings, making it the first financial services player to be sent to the NCLT for resolution.
As of July 2019, the beleaguered home financier owed Rs 83,873 crore to banks, National Housing Board, mutual funds and bondholders/retail bondholders.
Of the total, the secured debt stands at Rs 74,054 crore and Rs 9,818 crore in unsecured debt. Most banks have declared DHFL accounts as non-performing assets.