DHFL's forensic audit reveals Rs 20,000 crore diversion

A forensic audit of DHFL (Dewan Housing Finance Ltd) by KPMG, commissioned by lenders to the non-banking finance company (NBFC) has found a diversion of Rs 20,000 crore to private entities of the promoters through the use of "box companies", according to a report. However, in a strange development, the report has not been submitted to the board of directors. The Securities and Exchange Board of India (SEBI) is aware of the forensic audit report. In the DHFL matter, the report said that the SEBI seems unwilling to enforce the corporate governance rules it had recently made more stringent. SEBI has not asked lenders to present the forensic report to the board of directors for discussion. The report is material disclosure under the listing obligations and disclosure requirements regulations of SEBI. Deepali Pant Joshi, former executive director of RBI, who is an independent director of DHFL since May this year, says she is unaware of the forensic report and has refused to say if she has raised this with the management, the report noted.