InvestorQ : I have a small FD with Dewan Housing and am worried about what will happen to it? Is the money safe?
Khushi Patel made post

I have a small FD with Dewan Housing and am worried about what will happen to it? Is the money safe?

Answer
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Anjana Aiyar answered.
11 months ago


Actually, this has become a major concern for many depositors after the company announced a freeze on deposit repayments. You may have to contact the company directly for the exact status but some of the recent developments have not been too encouraging. Here is why.

You must be aware that Dewan Housing Finance Ltd (DHFL) has recently come under the scanner of the Serious Frauds Investigation Office (SFIO) after allegations that the company had siphoned off Rs 31,000 crore worth bank loans through layers of shell entities into their personal accounts. Both the MCA and the ROC have found enough evidence in this light. IT was the ROC that indicated suspected fund diversions, following which the MCA (Ministry of Corporate Affairs) asked the SFIO to probe the casein much greater detail. A forensic audit by KPMG has also apparently found massive fund diversion by the promoters.

At the current point of time, DHFL has sought a lifeline of Rs.15,000-crore but that has been hard to come by. While it is still advisable to check with the company on the status of deposits, the chances of your getting back the money at this point of time are quite slim.