Dewan Housing Finance share price gained 21.1% to 162.30 compared to the previous close of 133.90 on the NSE. On BSE, Dewan Housing Finance share rose 20% to 160.80 against previous close of 134.
Source: Business Today
Shares of Dewan Housing Finance (DHFL) rose in early trade today after the home loan firm released a report by an independent chartered accountant firm saying that it had not created shell companies to divert funds. Investigative media outlet Cobrapost had alleged that loans from public sector banks were diverted by Dewan Housing to shell companies, including those linked to its controlling shareholders.
Dewan Housing Finance share price gained 21.1% to 162.30 compared to the previous close of 133.90 on the NSE. On BSE, Dewan Housing Finance share price rose 20% to 160.80 against the previous close of 134.
Dewan Housing Finance share opened with a gain of 10% at 147.40 on the BSE. Dewan Housing Finance share price has lost 38.23% since the beginning of this year and fallen 69.86% during the last one year. The Dewan Housing stock has been gaining for the last 3 days and has risen 22.25% during the period.
The Dewan Housing share price was trading above its 50-day moving average of 150.60 and below its 200-day moving average of 284.84 levels, respectively.
Investigative news portal Cobrapost in January this year alleged that the primary promoters of DHFL siphoned off more than Rs 31,000 crore of loans from public sector banks in one of the biggest financial scams ever. The alleged scam was pulled off through grants of loans and advances to shell companies. Money was also allegedly routed through dubious companies and parked outside India to acquire assets. Cobrapost claimed to have unearthed the scam by “closely scrutinising public records available with government authorities and information available in public domain”. It accused DHFL and their associated companies of “systemic fraud in broad daylight” to siphon off public money.
Independent CA firm TP Ostwal & Associates cleared DHFL of all the allegations by CobraPost in its report placed before the audit committee members.
Among major findings and conclusions, the firm said, “The Company 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. Accordingly, there are no indications to confirm the allegations that the company has created shell companies to divert funds. 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.”
Cobrapost had claimed that the private assets acquired by the Wadhawans and their associates were completely ring-fenced from any recovery process and that the public sector banks would be the big losers.
No evidence was found to corroborate or support allegations of tax fraud perpetrated by the Company or violations of various other statutes (Income-tax Act, 1961, Companies Act, 2013, FEMA,2019, etc.) – prima facie also; it can be concluded that the Company could not have been party to such frauds since there was no role for the company to play in the perpetration of any such fraud.”
The CA firm further 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.”