Dewan Housing falls for fifth straight day on mismanagement claims

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Dewan Housing falls for fifth straight day on mismanagement claims

Dewan Housing falls for fifth straight day on mismanagement claims 1

A woman walks past a signboard of Dewan Housing Finance Corporation Ltd. (DHFL) outside its office on the outskirts of Mumbai, January 31, 2019. REUTERS/Francis Mascarenhas/File Photo

(Reuters) – Shares of Indian home loan provider Dewan Housing Finance Corp Ltd fell for the fifth straight session on Friday, a day after it appointed an “independent” auditor to investigate allegations of financial mismanagement against the company.

Investigative media outlet Cobrapost alleged in a report published Tuesday that a large amount secured from Indian state banks was diverted by Dewan to shell companies, including those linked to its controlling shareholders.

Dewan Housing has denied lending to shell companies and said on Thursday it had not received any communication from the Indian government in relation to a probe, after Reuters reported on Wednesday India had started a probe into Cobrapost’s claims.

Dewan’s shares fell as much as 11.7 percent to 120 rupees, its lowest level since May 2014. The Mumbai-headquartered company was the second most heavily traded stock on the National Stock Exchange.

Reporting By Arnab Paul in Bengaluru; Editing by Sudarshan Varadhan and Rashmi Aich

Our Standards:The Thomson Reuters Trust Principles.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-02-02 21:02:24

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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