DHFL Surges After Independent CA Firm’s Report On Cobrapost Allegations

Dewan Housing Finance Corporation Ltd. surged as much as 20 per cent to Rs. 160.80.

DHFL shares rose as much as 21% on the NSE.

Shares of the Mumbai-based mortgage lender-Dewan Housing Finance Corporation Ltd. surged as much as 20 per cent to Rs. 160.80 on the BSE after an independent chartered accountant firm T. P. Ostwal & Associates LLP gave clean chit to DHFL promoters on the allegations made by Cobrapost. DHFL said in an exchange filing after market hours yesterday. On the National Stock Exchange, DHFL share price jumped 21.20 per cent to Rs.162.30. Cobrapost had alleged financial misappropriation by the controlling shareholders of the company.

CA firm TP Ostwal & Associates LLP said that DHFL has not promoted any of the alleged 26 “shell” companies that are borrowers. Further, it does not have any directors in common, including members from the promoter group, with any of these alleged “shell” companies. Further, the company or promoters do not have any shareholding in these entities, nor are these entities shareholders of the Company.

“Pertaining to allegations in respect of loans worth Rs. 14,282 crore to 45 borrower-companies that are alleged to be part of Sahana group or Wadhawan group, we do not find merit in these allegations,” the CA firm said.

The allegation of political considerations in connection with certain lending was found to be baseless and without merit – there was no nexus between loans sanctioned and timing of the elections. All of such loans were, in fact, not sanctioned before or during either the Gujarat (December 2017) or Karnataka (May 2018) state elections, the CA firm added in its findings, CA firm’s report added.

In today’s trade DHFL shares saw heightened trading volumes as 46 lakh shares changed hands on the BSE compared with an average of 18.52 lakh shares traded daily in the past two weeks.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *