Dewan Housing Finance Limited (DHFL) fraudulent transactions disclosed by forensic auditors
A Forensic audit conducted by the audit firm Grant Thornton into the affairs of Dewan Housing Finance Limited (DHFL) has found out several fraudulent transactions worth Rs. 14,000 crore. As per the report prepared by the forensic auditor, the fraudulent transactions were taken place between the financial years 2006-07 to 2018-19. Further, another Rs 3,348 crore is considered as due and outstanding towards notional loss to DHFL as it is fraudulently charging lower rates of interest from certain entities generally called as the Bandra Book Entities. Several lenders including State Bank of India, Punjab National Bank, Union Bank of India, Indian Bank, Punjab & Sind Bank have already reported DHFL as a fraud account.
Earlier, DHFL posted a profit of Rs. 70.1 crore in the quarter ended June 30, 2020. But the auditors have doubted its ability to remain a “going concern”. In other words, the auditors expressed that the company will not be able to continue its operations for a long period of time. That is because it will depend upon the outcome of the resolution process. DHFL became the first financial sector company to undergo the Corporate Insolvency Resolution Process (CIRP) in November 2019 when its losses exceeded its share capital and reserves.
