A Metro train passes in front of new apartments in Dwarka, New Delhi, India (Photographer: Amit Bhargava/Bloomberg News)

DHFL CEO Harshil Mehta Resigns

Dewan Housing Finance Corporation Ltd. on Wednesday said its chief executive officer Harshil Mehta has decided to resign from his position with immediate effect.

“However, he would continue to be associated with the company and shall hold the designation of executive president-retail business with effect from Feb. 14, 2019,” DHFL said in an exchange filing. Besides, the board recommended appointment of Sunjoy Joshi as an independent director and Srinath Sridharan as a non-executive director.

Last month, investigative news organisation Cobrapost had alleged that DHFL had siphoned off funds by extending loans to shell companies owned by its promoters. Wadhawan Global Capital is the promoter firm of DHFL.

The loans were extended after receiving financing from domestic and international banks for on lending purposes. In its investigation, Cobrapost claimed that SBI had given loans worth Rs 11,650 crore to DHFL, while Bank of Baroda had given around Rs 4,400 crore. They are the two largest lenders to the company.

Both banks have confirmed in the past that their actual exposure is close to the number mentioned by Cobrapost.

The housing finance company, however, had refuted all allegations by the investigative media portal.

Also read: Bank Of Baroda Initiates Forensic Audit Of DHFL Loans