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DHFL shares tank 20 percent on report of government probe

DHFL shares tank 20 percent on report of government probe

DHFL shares tank 20 percent on report of government probe
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By Nirav Vyas  Jan 31, 2019 11:42:45 AM IST (Published)

 The stock plunged as much as 19.8 percent to Rs 129.60 per share on the BSE.

Shares of Dewan Housing Finance Corporation Ltd slumped nearly 20 percent after a report claimed that the government has ordered a probe into allegations of financial irregularities by the promoters of the company. The stock plunged as much as 19.8 percent to Rs 129.60 per share on the BSE.

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The Ministry of Corporate Affairs will investigate allegations against DHFL after a report by investigative news portal Cobrapost alleged that the mortgage lender's promoters siphoned off about Rs 35,000 crore, reported Reuters, citing two government sources with direct knowledge of the matter.
At 10.52 am, the stock was trading 15.07 percent down at Rs 137.25 per share. The benchmark Sensex, meanwhile, was trading 0.9 percent higher, at 35,904.45 points.
As many as 32 Indian and foreign banks lent Rs 97,000 crore to DHFL Group companies with many borrower companies having the same addresses, directors and auditors, Cobrapost has alleged.
The company's chairman Kapil Wadhawan, in an interview with CNBC-TV18, refuted Cobrapost charges and claimed that all loans are scrutinised by DHFL's finance committee, in line with their standard operating processes.
Later in a conference call, Wadhawan said, “The motive of the said Vikas Shekhar appears to be extortion and causing wrongful loss to DHFL by damaging the goodwill and reputation of the company. In fact, the manner in which the complaint and the petition have been drafted, filed and served upon the company raises a finger of suspicious on the modus operandi of the complainant and his intentions."
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