More troubles brew for Dewan Housing Finance Ltd (DHFL) as the Income Tax Department has summed the housing finance major to explain "certain suspicious transactions.”
According to sources, "The Income Tax Department has sent notice to DHFL under Section 131 of I-T Act to furnish books of accounts explaining certain suspicious transactions."
Section 131 of the Income Tax Act empowers the income tax authorities to conduct inquiries. It provides powers to summon persons/witnesses, examine them under oath, compel production of books of account and documents, and issue commissions.
A senior I-T department official confirmed to CNBC-TV18 that the Mumbai division of the tax department had sent summons to DHFL last week after it had identified several suspicious transactions, which need to be explained.
DHFL did not respond to CNBC-TV18’s request for a comment.
A senior company official confirmed the development and said "the notice has been received, the company is working on the details sought by the tax department and shall soon present its case in front of the taxman."
DHFL shares settled at Rs 104.95 on the BSE, down 3.54 percent from its previous closing.
CNBC-TV18 had previously reported, citing sources, that Ministry of Corporate Affairs' Mumbai regional director
will submit its report to the government on the allegations of Dewan Housing Finance (DHFL) diverting Rs 31,000-crore loans.
The company has been surrounded by controversies after investigative news portal Cobrapost alleged that a promoter of the company siphoned off more than Rs 31,000 crore of public money through shell companies.
The lender has denied the allegations, saying the "mischievous misadventure appears to have been done with a mala fide intent to cause damage to the goodwill and reputation of DHFL and resulting in erosion in shareholder value".