National Housing Bank imposes fine of Rs 80,000 on PNB Housing Finance
National Housing Bank imposes fine of Rs 80,000 on PNB Housing Finance

PNB Housing Finance, which is under the scanner of SEBI due to the proposed Rs 4,000 crore-investment by US-based private equity firm Carlyle and others, has been fined by National Housing Bank (NHB), a regulatory body for overall regulation and licensing of housing finance companies in India.

According to a filing by PNB Housing Finance, it stated the body has fined the company a penalty of Rs 80,000 plus GST for non-compliance with policy circular regarding disbursement of home loans in the year 2015.

The company in its filing to exchange stated the fine is imposed for the projects namely Pushpban and Chaitraban situated at Village Pirangute, Taluka Mulshi, District Pune (Project) duly promoted and developed by DSK.

The company made a representation to NHB on June 14, 2021 to re-consider the penalty as this matter was earlier dealt with by the NHB in October 2019 and a caution advisory was then issued.

At present, reports suggest the housing finance company is under the radar of Reserve Bank of India as well as Sebi as they are likely to look into various regulatory issues related to the proposed Rs 4,000 crore-investment by US-based private equity firm Carlyle and others in PNB Housing Finance.

Last month, the board of PNB Housing Finance cleared a proposal to raise up to Rs 4,000 crore by issuing preference shares and convertible warrants to Carlyle Group firms and other entities.

According to the sources, concerns of minority shareholders, corporate governance and other regulatory aspects would be looked into by both regulators.

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