No evidence of DHFL forming shell companies to divert funds: Auditor

Mumbai: Dewan Housing Finance Corporation Limited (DHFCL) did not promote any of the 26 shell companies which were alleged to have siphoned off nearly Rs 35,000 crore, independent audit firm T P Ostwal & Associates has said.

“There is no evidence of DHFL forming shell companies to divert funds, promoters hiding shareholding in any companies and insider trading,” said the audit firm’s report.

The detailed report comes following allegations by Cobrapost in January that accused DHFL promoters of committing financial fraud by creating shell companies.

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A total of 32 Indian and foreign banks lent Rs 97,000 crore to DHFL Group companies with many borrower companies having the same addresses, directors, and auditors, the news portal had alleged.

The TP Ostwal report refuted Cobrapost claims and said there was no merit in allegations that Rs 14,282 crore loans were sanctioned to 45 borrowers, which are alleged to be part of Sahana Group/Wadhawan Group.

“Loans were disbursed to only 10 of the alleged 45 companies, totalling Rs 4,715 crore–of which Rs 1,640 crore was repaid by borrowers up to December 2018,” it said.

TP Ostwal & Associates LLP also found Cobrapost’s allegations baseless and without merit. “We were unable to find evidence to support the allegations that the promoters have concealed shareholding in the company neither did we find any evidence to support the allegation of insider trading,” said the audit firm.


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