Govt likely to direct SFIO in DHFL financial irregularities

A Serious Fraud Investigation Office (SFIO) investigation is likely to be ordered by the central government into the alleged financial irregularities at debt-ridden mortgage firm Dewan Housing Finance Corporation (DHFL) after a report by the Registrar of Companies (RoC) indicated fund diversion, as per the information from the source.

Earlier this year, the Mumbai office of the RoC had initiated a detailed investigation into the alleged financial irregularities, including fund diversion, by DHFL promoters. The source has further informed that the RoC submitted its report on DHFL to the Ministry of Corporate Affairs (MCA) a few days ago.

As per the SFIO, there is a good enough reason to consult the SFIO, the official said, adding that the report indicates diversion and siphoning of funds.

DHFL came in the eye of storm after a report suggested that the company, through layers of shell companies, allegedly siphoned off Rs 31,000 crore out of total bank loans of Rs 97,000 crore. Following the allegations, the Mumbai office of the RoC started looking into the matter and found that certain offices that were reported as shell companies were not found at their given addresses.