Independent audit firm T. P. Ostwal & Associates ruled out that Dewan Housing Finance Corporation Ltd allegedly created 26 shell companies that are borrowers. However, the auditor did say that the loan sanctioned and disbursed for the slum rehabilitation development may have reached to the promoter entity, i.e. Kyta Advisors Pvt. Ltd.
The independent audit firm stated, “Our examination of available financial statements of Darshan Developers indicates that the shareholding has indeed undergone a change during the period of our review.” The firm added, “It is highly probable that certain amounts lent to the four companies may have been used to purchase shares of Darshan Developers aggregating to Rs 1,424.16 crore from Kyta Advisors and other instruments worth Rs 299.28 crore (total Rs 1,723.44 crore).”
The entire auditing revolves around the allegation made by Cobrapost that the promoters of DHFL Ltd conducted a Rs 31,000-crore scam. The report by the auditor stated that the company does not have any directors in common with any of the alleged 26 shell companies, nor did it find any evidence of insider trading or concealing shareholder information.
The auditor’s report also failed to find any nexus between loans sanctioned and timing of the elections, nor did it found any substantial base to support the allegation of tax fraud. The report also stated that the allegations made in regards to loans given to Sahana group and Wadhawan group could not be corroborated as well.