DHFL tanks 5% on forensic audit pointing to fund diversion

INSUBCONTINENT EXCLUSIVE:
Shares of Dewan Housing Finance Corporation (DHFL) tanked nearly 5 per cent after reports of a forensic audit of the mortgage lender found
fund diversion of around Rs 20,000 crore to private entities of the promoters. The scrip was down 4.90 per cent at Rs 19.40 in the early
trade, while the benchmark BSE Sensex was almost flat at 38,959 at around 9.20 am (IST). KPMG, which carried out the forensic audit,
submitted a draft report to the lenders, having found that DHFL promoters diverted nearly Rs 20,000 crore of bank loans to related entities,
according to PTI. However, a DHFL source told PTI that the company is surprised at the purported KPMG report, as the consultancy was not
asked to do any forensic audit on one hand, and on the other it has not shared the report with them. However, a banker confirmed the report
to PTI and said, “if a loan is given to a company which has siphoned off funds, there may not be any additional funding to that company
We don't want to get more money stuck with them anymore." But the banker did not disclose the exact amount of funds that have been siphoned
off by the debt-ridden housing finance company. DHFL has been facing liquidity issues since last September and yet has paid back Rs 41,000
crore of its financial obligations through a combination of securitization of assets and repayment collections since.