Published On : Tue, Jan 29th, 2019

Cobrapost Says Promoters Of Dewan Housing Finance Involved In Rs 31,000 Cr Scam

DHFL’s shares fell more than 7 percent.

News website Cobrapost said on Tuesday that it has unearthed a Rs 31,000 crore scam involving housing finance company Dewan Housing Finance Corporation Ltd (DHFL).

The scam, said Cobrapost, had been conducted by giving loans and advances to dozens of shell companies without any security. The money, said the website, circled back to DHFL’s promoters, who used it to buy shares and other assets in India and foreign countries, including England, Dubai, Sri Lanka and Mauritius.

The NBFC is led by chairman and managing director Kapil Wadhawan.

DHFL’s shares fell more than 7% on the news—markets had been wary since morning after Cobrapost teased ahead of its afternoon press conference that it had unearthed a scam.

State Bank of India, India’s largest public sector bank, has exposure of more than Rs 11,000 crore to DHFL, Cobrapost said in a press release.

Bank of Baroda is next on the list with an exposure of Rs 4,396 crore.

HuffPost India has contacted DHFL and will update this story if we receive a response.