Comments
An investigation carried out by Grant Thornton into the affairs of Dewan Housing Finance Corporation Limited has unearthed fraudulent transactions.
The preliminary estimation included in the application places the monetary impact of the concerned transactions at approximately Rs 14,046 Crores, as being the amount outstanding in the books of the Company as on June 30, 2019 and additionally Rs 3,348 Crores being the amount considered as due and outstanding towards notional loss to the Company on account of charging lower rate of interest to certain entities referred to in the Application as the Bandra Book Entities,” the company said in a stock exchange filing.
The Administrator of Dewan Housing Finance Corporation Limited, appointed under the IBC Code had appointed Grant Thornton to conduct investigation of the affairs of the Company. As per the report prepared by the transaction auditor, the concerned transactions occurred during Financial Year 2006-2007 to 2018-19.
Based on the Transaction Auditor’s report, the application has been filed with the NCLT, Mumbai against 87 respondents, including Kapil Wadhawan, Dheeraj Wadhawan, Township Developers India Ltd, Wadhawan Holdings Private Limited, Dheeraj Township Developers Private Limited, Wadhawan Consolidated Holdings Pvt. Ltd., Wadhawan Global Hotels & Resorts Pvt. Ltd, Wadhawan Lifestyle Retail Pvt. Ltd. and certain others entities as reported by the transaction auditor. The Application has been filed before the NCLT under Section 60(5) and Section 66 of the Code on August 30, 2020.
Earlier, on August 23 Dewan Housing Finance Corporation Ltd posted a net profit of ₹70.1 crore in the quarter ended June 30, 2020 but its auditors had once again flagged that its ability to remain a “going concern” will depend on its resolution process.
“The company has accumulated losses exceeding the share capital and reserves and its net worth has been fully eroded; and it is now under Corporate Insolvency Resolution Process (CIRP),” the auditors KK Mankeshwar and Co noted in their comments on the first quarter results of the housing finance company. DHFL became the first financial sector company to be taken into the corporate insolvency process in November last year.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.