Harshil Mehta, the CEO of DHFL has decided to step down from his position with immediate effect. DHFL in a statement released to the stock exchanges on Wednesday said: “However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019.”
The current development comes after the recent sting operation conducted by Cobrapost, which accused Dewan Housing Finance Corporation Ltd (DHFL) of allegedly syphoning off Rs 31,000 crores out of the total bank loans of Rs 97,000 crores through layers of shell companies.
The expose conducted by Cobrapost alleged that the scam took place mainly by sanctioning and disbursing astronomical amounts in secured and unsecured loans to dubious shell or pass-through companies related to DHFL’s primary stakeholders Kapil Wadhawan, Aruna Wadhawan and Dheeraj Wadhawan.
DHFL in their regulatory filing to the exchanges also said that the board has recommended the appointment of Sunjoy Joshi as an Independent Director and Srinath Sridharan as a Non-Executive Director.