DHFL share hits 5% lower circuit after CBI books promoters for fictitious home-loan accounts

Shares of Dewan Housing Finance Corporation (DHFL) hit lower circuit on Thursday after the Central Bureau of Investigation (CBI) booked the company and its directors for allegedly creating over 2.60 lakh fictitious home-loan accounts, some of which were used to claim interest subsidies in the Pradhan Mantri Awas Yojna (PMAY). DHFL share price was locked in 5 per cent lower circuit at Rs 16.65 on the BSE.

The stock opened lower at Rs 16.75 against previous close price of Rs 17.5 on the BSE. On the volume front, 2.54 lakh shares changed hands over the counter as compared to two-week average volume of 4.03 lakh shares. Meanwhile, the BSE benchmark Sensex was trading 506 points or 1.03 per cent lower at 48,673.

On the National Stock Exchange, DHFL shares were trading 4.85 per cent lower at Rs 16.60. The stock hit an intraday high and low of Rs 16.85 and Rs 16.60, respectively.

The CBI has registered against DHFL promoters Kapil Wadhawan and brother Dheeraj, who are currently in jail in money-laundering case, along with the company for allegedly opened a fictitious branch of the DHFL in Bandra and fake accounts worth Rs 14,046 crore of home-loan borrowers, who had already repaid their loans, were entered in the database, reported news agency PTI.

As per the report, the irregularities were pointed out in the report of auditor Grant Thornton, appointed by the present board of the scam-hit DHFL.

A total of 2.60 lakh "fake and fictitious" home-loan accounts were created in the non-existent branch from 2007-19 for total loan worth Rs 14,046 crore, out of which Rs 11,755.79 crore were deposited or routed to several fictitious firms known as Bandra Book firms, according to the FIR. The DHFL had granted 88,651 cases under the PMAY till December 2018 and it received interest subsidy of Rs 539.40 crore, while it has to receive Rs 1,347.80 crore from the government, it said.

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