DHFL moves NCLT alleging irregularities in loans worth Rs. 12,705.53 crore in the development of SRA projects

The administrator for Dewan Housing Finance Corp. Ltd (DHFL) has approached the National Company Law Tribunal (NCLT) against the company's promoters Kapil and Dheeraj Wadhawan for alleged irregularities in loans worth Rs. 12,705.53 crore to slum rehabilitation projects, the company informed the stock exchanges.

The administrator – R. Subramaniakumar has approached the NCLT for the second time. Earlier this month, he had moved against the Wadhawans in connection with "fraudulently charging" lower interest rate to certain entities referred to as "Bandra Book Entities".

According to DHFL, "As per the transaction auditor's report shared with the administrator, the monetary impact of the above transactions covered under the application amount to Rs. 12,705.53 crore, which includes principal of Rs. 10,979.5 crore and accrued interest of Rs. 1,726.03 crore, being the amount outstanding in the books of the company as on 30 November 2019."

The administrator has moved the tribunal in connection with the irregularities in loan disbursements towards development of Slum Rehabilitation Authority projects undertaken by the company. As per the report, the transactions occurred between FY2017 and FY2019. Grant Thornton India Llp was appointed as the auditor to look into the transactions, it said.

Based on the auditor's report, the administrator has named 40 respondents, including the Wadhawan brothers, Darshan Developers Pvt. Ltd, and Sigtia Constructions Pvt. Ltd.