National Housing Bank
) has concluded its inspection of books for
Dewan Housing Finance
Corporation Ltd’s alleged misappropriation of loans.
The four-member committee of the housing regulator checked the company’s books of accounts in offices in New Delhi, Nagpur and Mumbai and is expected to submit its report in the next few weeks, two people familiar with the matter told ET. The inspection ended last week.
A consortium of 33 lenders,led by Union Bank of India, is said to have given clean chit to DHFL on Tuesday after they heard TP Ostwal & Associates, the auditor, which cleared the company of allegations of wrongdoing.
DHFL senior executives, including CFO Santosh Sharma, president (retail) Harshil Mehta and senior official S Govindan, were present at the meeting where lenders sought clarity from the independent auditor.
Queries emailed to DHFL, NHB and Union Bank of India remained unanswered until publication of this report.
“Although the inspection is more of a routine job by NHB, this assumed significance as the housing regulator wanted to investigate the allegations levelled against the company,” one person said.
NHB is said not to have identified any major deviation, but the final report is likely to be submitted soon, the person said.
In January, investigative portal Cobrapost accused DHFL’s promoters of siphoning Rs 31,000 crore through shell companies, raising concerns among lenders and shareholders.
TP Ostwal examined the allegations and submitted its report, clearing the company of all such allegations.
However,it spotted certain lapses and departures from standard operating procedures and policies laid down by the company. “We have cross-checked the records from the accounting/operational system of the company to verify that no loans were sanctioned/disbursed to these 40 entities during April 2015 to December 2018,” TP Ostwal said.
The company management submitted that the allegations of loans to some of these entities actually related to companies that provided guarantees or companies that are under subvention schemes of retail borrowers.
DHFL, the flagship company of Wadhawan Global Capital, is looking to raise money by stake dilution.
DHFL shares closed at Rs 127.95 on the BSE on Wednesday, having declined about 41 per cent in the past three months.