DHFL board seeks reply to KPMG audit report

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Published: October 24, 2019 2:16:02 AM

In earlier clarifications, DHFL had said it had in the normal course of business funded projects of various companies in and around Mumbai, but never directly to Sunblink, a realty firm with alleged links to Mirchi.

On Monday, the company said that the Enforcement Directorate had questioned its senior officials.

The board of Dewan Housing Finance (DHFL) on Wednesday directed the company to present a detailed response to observations made in a lender-commissioned forensic audit report before its audit committee. It also directed the company to share the responses with its lenders, DHFL said in a notification to the stock exchanges.

“The board of directors at a meeting held on October 23, 2019, took cognisance of the key observations from the draft report prepared by KPMG, which was appointed by Union Bank of India, the lead banker of the consortium, on behalf of all the members of the consortium as received from the lenders,” the mortgage lender said.

DHFL has been in the eye of a storm, with its offices being raided by investigative agencies in a case concerning criminal Iqbal Mirchi. On Monday, the company said that the Enforcement Directorate had questioned its senior officials.

In earlier clarifications, DHFL had said it had in the normal course of business funded projects of various companies in and around Mumbai, but never directly to Sunblink, a realty firm with alleged links to Mirchi. “The dues of Rs 2,186 crore comprise the principal amount and the interest payable on the principal sum. On account of certain corporate actions undertaken with/by Sunblink, as on date, Sunblink is mentioned as a borrower. The amounts were never lent to Sunblink as alleged in the media,” DHFL had stated.
DHFL started defaulting on payment obligations in June 2019. The total liabilities stood at Rs 83,873 crore as on July 6.

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