DHFL share price fell 17 per cent to Rs 134 in early trade Thursday after government launched probe into Rs 31,000 crore fund diversion allegations, news agency Reuters reported citing unidentified sources. The investigation will be carried out by Ministry of Corporate Affairs (MCA) on the accusation launched against the company by a news portal, the news agency added.
The media report claimed that DHFL diverted funds to the shell companies to purchase assets and the firms related with the company’s controlling shareholders made political beyond mandated levels.
The company shares fell 8 per cent on Tuesday following a media report that alleged financial misappropriation to the tune of Rs 31,000 crore by firm’s controlling shareholders.
However, the company denied the allegations. “Loans have been lent basis the guidelines laid out by National Housing Board, and there is no deviation from these norms,” company officials had said.
The company also stated that it would explain in detail about loans to developers extended by the company and that these loans had been extended after proper due diligence.
The firm will be able to generate liquidity of Rs 40 billion in the coming few months, DHFL Chairman and Managing Director Kapil Wadhawan said on a conference call.
He also said that the company plans to monetise life insurance business and has begun the process of selling down bulk portfolio. DHFL would soon announce plans to raise debt from overseas markets, he added.