Shares of DHFL surged as much as 21.2% to ₹162.3 on the NSE after the home loan provider released a report by an independent chartered accountant, saying that it had not created shell companies to divert funds.
CobraPost had alleged in January that loans from state-run lenders were diverted by DHFL to shell companies, including those linked to its controlling shareholders.
DHFL had appointed an independent chartered accountant firm in consultation with the audit committee to verify the allegations made against the company by CobraPost. The CA firm, T. P. Ostwal & Associates LLP, had placed its report to the company's audit committee members at their meeting held on Tuesday.
DHFL has last night released the findings of the CA firm in a communication to the exchanges.
"There are no indications to confirm the allegations that the company has created shell companies to divert funds," the report said.
“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," the report added.
The CA firm did point out to some lapses in due diligences related to pre-sanctioning of loans.
“The company has policies in place to undertake pre-sanction due diligences and legal, technical and credit analyses to ensure adequacy of security against loans to be sanctioned and also to take on record corporate KYC-related documents. The value of security has been verified by independent valuers and report from such valuers have been obtained and are on record. Certain lapses and departures from the SOPs and policies laid by the company have been identified. These lapses, point to deficiency in the adherence with the policies in several instances - the risk of which needs to be examined by the company," the report said.
The CA firm in the report also referred to “deviations" in relation to post-sanction monitoring of fund use by some borrowers.
“There are certain instances of deviations and non-adherence to the terms of sanction of loans having major risk implications, especially in relation to post-sanction monitoring of fund use by borrowers. As such, non-compliances with the terms of the borrowing and possible diversion of funds, if any, by the borrowers would have escaped attention of the company," the report said.
DHFL shares pared some early gains and ended 11% higher at ₹148.50 on NSE.