DHFL on Friday said the administrator had submitted additional written statements at NCLT Mumbai in connection with fraud of more than Rs 1,424 Crore.
Process of completing the company’s debt in the National Law of Tribunal (NCLT)
The company, which is undergoing the process of completing the company’s debt in the National Law of Tribunal (NCLT), is being carried out by the administrator after the IL & FS crisis in 2018 and explores massive fraud in the company.
An initial report from the transaction auditor
The company’s administrator has appointed Grant Thornton (GT or Transaction Auditor) to conduct an investigation into the company’s affairs. The company’s administrator receives an initial report from the transaction auditor, indicating that there are certain transactions that are undervalued, fraudulent, and preferential in nature, DHFL said in the submission of regulations.
Basic investigations and observation of transaction auditors
“Basic investigations and observation of transaction auditors, administrators have submitted two additional written statements (to two applications that have been submitted) before the Mumbai bench from NCLT on March 4, 2021, in connection with certain disbursement as Inter Corporate Deposit (ICDS), against Kapil Wadhawan, Dheeraj Wadhawan, Developer of Township India Ltd. and entities to whom ICDS is given, “said DHFL.
Monetary impact of the transaction
According to the findings of the GT, the number of estimates involved in fraud puts the monetary impact of the transaction related to around Rs 1,424.32 Crore (which includes Rs 29.94 Crore against a loss of interest of increasing lower interest rates), the company said.
The transaction concerned occur during 2017-18 and 2018-19.
Frauds excavated by GT
The company continues to inform the findings from time to time. A variety of frauds have been excavated by GT including the recent last month involving fraud of more than Rs 6,180 Crore.
In July 2019, reserved home investors owed rs 83,873 crore to banks, the National Housing Board, mutual funds, and bondholders / retail bondholders.
DHFL account as non-performing assets
Of the total, the safe debt stands at Rs 74,054 Crore and Rs 9,818 Crore in unsecured debt. Most banks have declared a DHFL account as non-performing assets.