Home / Industry / Banking /  Administrator of DHFL moves NCLT, alleges 12,705 cr  fraud

MUMBAI: The administrator for Dewan Housing Finance Corp. Ltd (DHFL) on Sunday moved the National Company Law Tribunal (NCLT) against the company’s promoters Kapil and Dheeraj Wadhawan for alleged irregularities in loans worth 12,705.53 crore to slum rehabilitation projects, the company informed the stock exchanges on Monday.

This is the second application by the administrator, R. Subramaniakumar. On 2 September, he had moved NCLT against the Wadhawans in connection with “fraudulently charging" lower interest rate to certain entities referred to as “Bandra Book Entities".

“As per the transaction auditor’s report shared with the administrator, the monetary impact of the above transactions covered under the application amount to 12,705.53 crore, which includes principal of 10,979.5 crore and accrued interest of 1,726.03 crore, being the amount outstanding in the books of the company as on 30 November 2019," DHFL said.

The NCLT application pertains to irregularities in loan disbursements towards development of Slum Rehabilitation Authority projects undertaken by the company. As per the report, the transactions occurred between FY17 and FY19. Grant Thornton India Llp was appointed as the auditor to look into the transactions, it said.

Based on the auditor’s report, the administrator has named 40 respondents, including the Wadhawan brothers, Darshan Developers Pvt. Ltd, and Sigtia Constructions Pvt. Ltd.

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