Dewan Housing Finance Corp. Ltd (DHFL) shares dropped as much as 7% in intraday trade after media reports said that the Ministry of Home Affairs has issued lookout notice against promoters in connection with investigation into allegations of creating shell companies.
An investigation by the ministry of corporate affairs (MCA) has reportedly found that addresses provided by DHFL subsidiaries and its associated companies did not exist.
However, DHFL denied receiving any communication from the government with reference to lookout notice.
News portal Cobra Post had in January reported that DHFL promoters through layers of shell companies allegedly siphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore. The report alleged that the scam has been pulled off mainly by sanctioning and disbursing astronomical amounts in secured and unsecured loans to dubious shell or pass-through companies related to DHFL's primary stakeholders Kapil Wadhawan, Aruna Wadhawan and Dheeraj Wadhawan.
Last week, the corporate affairs ministry had asked home affairs ministry to issue lookout notice against DHFL promoters to prevent them from leaving India till the investigation is completed, a CNBC-TV18 report said.
A senior government official had also told CNBC-TV18 on Sunday that the corporate affairs ministry is understood to have suggested over 20 names against whom look-out circulars (LOCs) might be issued. The report added that the move follows government’s decision to tighten noose around companies, promoters and directors involved in serious fraud and irregular transactions.
Earlier this week, Jet Airways founder Naresh Goyal and his wife Anita Goyal were deplaned from a Dubai-bound flight. The couple was denied permission to travel abroad by the immigration authority at Mumbai airport in light of the current crisis at the now-grounded Jet Airways.
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