In a report shared with the RBI-designated administrator R Subramaniakumar of Dewan Housing Finance Company Ltd. (DHFL), transaction auditor Grant Thornton has found a new fraud worth Rs 6,182 crore. Grant Thornton was appointed by the administrator of DHFL to investigate the company in respect of transactions qualified under sections 43 to 51, and sections 65 and 66 of the Code. The administrator of DHFL was appointed under the Insolvency and Bankruptcy Code, 2016.
What is the fraud about:
The Rs 6,182-crore worth transactions were termed as fraud for being undervalued, and fraudulent and preferential in nature, stated the auditor.
The nature of fraud is in relation to irregularities in disbursement of other large project loans (OLPL) by the non-banking financial company in the past.
As per the report, the monetary impact of the above transactions covered under the application amounts to Rs 5,381.90 crore towards outstanding principal, Rs 589.36 crore towards accrued interest, and Rs 210.85 crore towards notional loss of interest on account of charging of a lower rate of interest.
An application has been filed before the Mumbai bench of the National Company Law Tribunal in respect of disbursement made to certain entities as OLPL, against Kapil Wadhawan, Dheeraj Wadhawan, Creatoz Builders Pvt. Ltd., Ikshudip Fincap Pvt. Ltd., Rite Developers Pvt. Ltd., and certain other entities.
In the past, there were reports that stated that DHFL has created hundreds of fictitious loan accounts, demand for recoveries amounting to Rs 14,046 crore.
In December 2020, the auditor had reported fraudulent transactions worth approximately Rs 1,058.32 crore. It was regarding transactions that involved institutions such as El Dorado Biotech, Fortune Broking Intermediary, Fortune Gilts and Black Rock Financial Services, and NAPHA Building Shrem Investments and Shrem Construction (Shrem entities).
(With inputs from agencies)