View source for Piramal Capital and Housing Finance Limited

{{Short description|Housing finance company in Mumbai, India}}
{{Outdated|date=April 2024}}
{{Use dmy dates|date=May 2018}}
{{Use Indian English|date=May 2018}}
{{Infobox company
| name = Piramal Capital and Housing Finance Limited
| logo =
| type = [[Public company|Public]]
| traded_as = {{BSE|511072}}<br />{{NSE|DHFL}}
| ISIN = {{ISIN|sl=n|pl=y|INE202B01012}}
| industry = Financial services
| founded = {{Start date and age|df=yes|1984|04|11}}
| founder = Rajesh Wadhawan
| hq_location = [[Mumbai]]
| hq_location_city =
| hq_location_country = [[India]]
| key_people = {{Unbulleted list|Jairam Sridharan<br />(Managing director)}}
| products = {{Unbulleted list|[[Home Loan]]|Non-Housing Loans|[[Deposits]]}}
| services = Financial Services
| operating_income = {{increase}} ₹10,44.5 crore (2017-18)<ref name="AutoGO-1">{{Cite journal|title=DHFL Financial Report FY 2017-18|url=https://www.dhfl.com/docs/default-source/investors/annual-reports/2017-2018/dhfl-annual-report-fy-2017-18.pdf?sfvrsn=85528007_0}}</ref>
| net_income = {{increase}} ₹1,171 crore (2017-18)<ref name="AutoGO-1"/>
| aum = {{increase}} ₹1,11,086 crore <ref name="AutoGO-1">{{Cite journal|title=DHFL Financial Report FY 2017-18|url=https://www.dhfl.com/docs/default-source/investors/annual-reports/2017-2018/dhfl-annual-report-fy-2017-18.pdf?sfvrsn=85528007_0}}</ref>
| num_employees = 9,500+ (2018)<ref name="AutoGO-1"/>
| parent = [[Piramal Group]]
| website = {{URL|www.piramalfinance.com}}
}}
'''Piramal Capital and Housing Finance Limited''' (earlier '''Dewan Housing Finance Corporation Ltd.''' ('''DHFL''')) is a non-deposit taking housing finance company, headquartered in [[Mumbai]] with branches in major cities across [[India]].<ref>{{Cite web|url=https://www.nse-india.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=DHFL&series=NI|title=NSE - National Stock Exchange of India Ltd.|website=nse-India.com|access-date=2018-02-01}}</ref><ref>{{Cite web|url=http://www.bseindia.com/stock-share-price/dewan-housing-finance-corporation-ltd/dhfl/511072/|title=Stock Share Price dewan housing finance corporation ltd {{!}} Get Quote dhfl |publisher=BSE|website=bseindia.com|access-date=2018-02-01}}</ref> DHFL was established to enable access to economical housing finance to the lower and middle income groups in semi-urban and rural parts of India. DHFL is the second housing finance company to be established in the country.<ref>{{Cite web|url=http://www.dhfl.com/about-us/about-dhfl/|title=About us - DHFL|website=dhfl.com|language=en-US|access-date=2018-02-01}}</ref> The company also leases commercial and residential premises. DHFL is among the 50 biggest financial companies in India.<ref>{{Cite web|url=https://economictimes.indiatimes.com/dewan-housing-finance-corporation-ltd/infocompanyhistory/companyid-12024.cms|title=Dewan Housing Finance Corporation History {{!}} Dewan Housing Finance Corporation Information - The Economic Times|website=economictimes.indiatimes.com|access-date=2018-02-01}}</ref>
DHFL is rated ICRA D by [[ICRA Limited]].<ref>{{Cite journal|title=DHFL ratings|url=https://www.bseindia.com/xml-data/corpfiling/AttachHis/eed21a5e-1a24-4e2a-af0c-2d9208997721.pdf|journal=BSE India}}</ref>
== History ==
DHFL was established and incorporated by Rajesh Kumar Wadhawan on 11 April 1984. The name of the company was changed to Dewan Housing Development Finance Ltd. and later to Dewan Housing Finance Corporation.<ref>{{Cite web|url=http://www.moneycontrol.com/company-facts/dewanhousingfinancecorporation/history/DHF#DHF|title=Dewan Housing Finance Corporation > Company History > Finance - Housing > Company History of Dewan Housing Finance Corporation - BSE: 511072, NSE: DHFL|website=moneycontrol.com|access-date=2018-02-01}}</ref>
In 2010, DHFL acquired [[Deutsche Postbank|Deutsche Postbank Home Finance]] unit for ₹1079 crores.<ref>{{Cite news|url=http://www.business-standard.com/article/companies/dhfl-buys-deutsche-postbank-s-unit-for-rs-1-079-crore-110120200037_1.html|title=DHFL buys Deutsche Postbank's unit for Rs 1,079 crore|agency=Press Trust of India|date=2010-12-02|work=Business Standard India|access-date=2018-02-01}}</ref> On 18 December 2013, DHFL acquired 74% stake DHFL Pramerica Life Insurance Company Ltd.<ref>{{Cite web|url=http://www.dhfl.com/wp-content/uploads/2014/06/DHFL-and-Prudential-Financial-Inc.-complete-ownership-transfer-of-life-insurance-joint-venture-in-India1.pdf|title=DHFL and Prudential Financial, Inc. complete ownership transfer of life insurance joint venture in India}}</ref>
On 29 January 2019, Cobrapost, an Indian investigative journalist group, published an exposé of DHFL for using various shell corporations to siphon more than ₹ 31,000 crores of public money for the personal gains of the DHFL's primary stakeholders: Kapil Wadhawan, Aruna Wadhawan and Dheeraj Wadhawan.<ref name="web.archive.org">{{cite web |url=https://cobrapost.com/blog/press-realise-dhfl-l/1374 |title=:: Cobrapost :: |website=cobrapost.com |access-date=15 January 2022 |archive-url=https://web.archive.org/web/20190129141356/https://cobrapost.com/blog/press-realise-dhfl-l/1374 |archive-date=29 January 2019 |url-status=dead}}</ref> In the same article, Cobrapost also raised allegations of political donations worth crores of rupees, in violation of Section 182 of Companies Act, 2013 for political donations.<ref name="web.archive.org"/> DHFL filed a response with the [[Bombay Stock Exchange]] saying the allegations raised by Cobrapost were untrue. DHFL, also rebutted these allegations in a hosted investors / analysts conference and clarified that the ₹ 31,000 crore loans mentioned in the allegation consist of its project loan portfolio. Also the company tried to clarify that the advances commented by Cobrapost should be ₹ 21,000 Crores and not ₹ 31,000 crores. Following the Cobrapost allegations, Indian credit rating agencies reaffirmed their high safety rating for the financial instruments issued by DHFL.<ref>{{Cite news|url=https://timesofindia.indiatimes.com/india/news-portal-alleges-rs-31000-crore-fraud-by-home-finance-company-dhfl/articleshow/67748033.cms|title=News portal alleges Rs 31,000 crore fraud by home finance company DHFL - Times of India ►|website=The Times of India|date=30 January 2019 |access-date=2019-02-05}}</ref>
Even after the emergence of serious allegations of misconduct against its business, the Indian credit rating agencies continued to issue high safety ratings for the DHFL financial products, but, on 6 June 2019, DHFL defaulted on its debt repayment, resulting in a debt rating downgrade, immediately wiping out 16% of the value from its stock price. At the time, the fall in DHFL stock price was an all year low. This rapid decline in stock price resulted in a loss of investor confidence.<ref>{{Cite web|url=https://www.moneycontrol.com/news/business/markets/dhfl-tanks-16-after-rating-downgrade-what-should-investors-do-4067641.html|title=DHFL tanks 16% after rating downgrade; what should investors do?|website=Moneycontrol|date=6 June 2019 |access-date=2019-06-07}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/mf/mf-news/debt-funds-take-a-tumble-as-dhfl-slips-on-payment/articleshow/69670067.cms|title=Debt mutual funds take a tumble as DHFL slips on payment|last=Mahesh|first=Prashant|date=2019-06-07|work=The Economic Times|access-date=2019-06-07}}</ref>
On 20 November 2019, the Reserve Bank of India removed the board of directors of the company citing corporate governance failure and the company's defaulted payment obligations.<ref>{{Cite web|url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48684|title=Reserve bank of India - Press Release}}</ref>
== Financial irregularities and probes against DHFL ==
In 2019, DHFL stopped payment of bonds and defaulted on its loan obligations. This caused its stock to fall over 97% and a government intervention in the company.<ref>{{Cite web|url=https://www.businesstoday.in/markets/company-stock/dewan-housing-finance-share-price-falls-icra-crisil/story/354114.html|title=Why Dewan Housing Finance share price fell up to 15% in early trade today|website=businesstoday.in|date=6 June 2019 |access-date=2019-07-25}}</ref><ref>{{Cite web|url=https://www.livemint.com/companies/news/dhfl-puts-fresh-deposits-and-renewals-on-hold-halts-pre-mature-withdrawals-1558460507432.html|title=DHFL puts fresh deposits and renewals on hold, halts pre-mature withdrawals|last=Borate|first=Neil|date=2019-05-21|website=Mint|language=en|access-date=2019-07-25}}</ref><ref>{{Cite web|url=https://www.livemint.com/market/stock-market-news/dhfl-shares-slump-20-after-halting-fresh-public-deposits-1558497975452.html|title=DHFL falls nearly 10% as company stops accepting fresh deposits, halts renewals|last=Borate|first=Ravindra N. Sonavane, Neil|date=2019-05-22|website=Mint|language=en|access-date=2019-07-25}}</ref><ref>{{Cite news|url=https://www.business-standard.com/article/companies/govt-launches-probe-against-dhfl-issue-may-hit-sector-investment-119013101503_1.html|title=Govt launches probe against DHFL, issue may hit sector investment|last=Roy|first=Anup|date=2019-01-31|work=Business Standard India|access-date=2019-07-25}}</ref><ref>{{Cite web|url=https://www.businesstoday.in/markets/company-stock/yes-bank-share-price-crashes-rs-1506-crore-net-loss-in-q4/story/341809.html|title=YES Bank share price loses 30% on surprise Rs 1,506-crore net loss in Q4|website=businesstoday.in|date=30 April 2019 |access-date=2019-07-25}}</ref>
In August 2019, as efforts to draft a resolution plan by restructuring DHFL debt into equity, a few of the DHFL bond holders moved to the debt recovery tribunal, which could impact the resolution process.<ref>{{Cite web|url=https://www.livemint.com/industry/banking/use-of-insolvency-code-in-dewan-housing-will-expedite-resolution-process-1569212343590.html|title=Use of insolvency code in Dewan Housing will expedite resolution process|last=Ghosh|first=Shayan|date=2019-09-23|website=Mint|language=en|access-date=2019-09-23}}</ref> The company meanwhile offered to repay all investors in full with due process of inter-creditor-agreement.<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/banking/finance/dhfl-offers-to-repay-investors-in-full-but-seeks-nod-for-ica/articleshow/71344455.cms|title=DHFL offers to repay investors in full, but seeks nod for ICA|last1=Das|first1=Saikat|date=2019-09-28|work=The Economic Times|access-date=2019-09-28|last2=Rebello|first2=Joel}}</ref>
In October 2019, the [[Enforcement Directorate]] conducted raids at several places of DHFL offices and promoter residences and found links of money laundering activity in loans given to firms closely linked to the promoters of the company.<ref>{{Cite web|url=https://indianexpress.com/article/business/companies/debt-laden-dhfl-loaned-to-firms-tied-to-its-promoters-ed-probe-6079523/|title=Debt-laden DHFL loaned to firms tied to its promoters: ED probe|date=2019-10-21|website=The Indian Express|language=en-IN|access-date=2019-10-21}}</ref> Additionally the trail of the loan given by DHFL to Sunblink real estate in 2010 lead to gangster Iqbal Mirchi, an accomplice of the organized crime mastermind Dawood Ibrahim.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/politics-and-nation/dhfl-lent-rs-2186-crore-to-company-under-lens-for-mirchi-links-ed-investigations-reveal/articleshow/71623886.cms|title=DHFL News: DHFL lent Rs 2,186 crore to company under lens for Mirchi links, ED investigations reveal|newspaper=The Economic Times}}</ref>
On 20 November 2019, under Section 45-IE (I) of the Reserve Bank of India Act, 1934, the Indian central bank removed the board of directors of Dewan Housing Finance Corporation Limited (DHFL). The reasons cited by the banking regulator for the dismissal of the DHFL board of directors were: inadequate governance and the various defaults on its payment obligations.<ref>{{Cite web|url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48684|archive-url = https://web.archive.org/web/20200213085754/https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48684|archive-date = 13 February 2020|title = Reserve Bank of India - Press Releases}}</ref>
On 27 January 2020, the promoter of DHFL, Kapil Wadhawan was arrested under the Prevention of Money Laundering Act (PMLA). The arrest was connected to his firm's alleged involvement in providing loans to the organized criminal enterprise of Dawood Ibrahim.<ref>{{Cite web|url=https://www.hindustantimes.com/india-news/dhfl-promoter-kapil-wadhawan-arrested-in-iqbal-mirchi-money-laundering-case/story-Pdouu5NbIzEhn6c27YD3cM.html|archive-url = https://web.archive.org/web/20200214184318/https://www.hindustantimes.com/india-news/dhfl-promoter-kapil-wadhawan-arrested-in-iqbal-mirchi-money-laundering-case/story-Pdouu5NbIzEhn6c27YD3cM.html|archive-date = 14 February 2020|title = DHFL promoter Kapil Wadhawan arrested in Iqbal Mirchi money laundering case|date = 27 January 2020}}</ref> On 22 February 2020, the PMLA court granted bail to Kapil Wadhwan. The Bombay high court upheld the bail decision by PMLA court, rejecting Indian [[Enforcement Directorate]] requests to stay the bail application.<ref>{{Cite web|url=https://www.hindustantimes.com/mumbai-news/cricket-matches-in-wankhede-to-disrupt-normal-traffic-in-south-mumbai/story-3azJrE5TQE5g7DF7oVOosJ.html|title = Cricket matches in Wankhede to disrupt normal traffic in South Mumbai|date = 8 March 2020}}</ref>
The ED has linked [[Yes Bank]] for various fraud and transactions amounting to 3700 crores as debentures in DHFL. The central bank appointed administrator at Dewan Housing Finance (DHFL) has ordered a transaction audit at the non-bank lender after allegations of money laundering surfaced in the aftermath of the regulatory action on Yes Bank.<ref>{{Cite web|url=https://www.ndtv.com/india-news/yes-bank-founder-rana-kapoors-wife-daughter-charged-by-cbi-in-alleged-bribery-case-2192282|title=Crisis-Hit Yes Bank Founder Rana Kapoor's Wife, Daughters Charged By CBI|website=NDTV.com|access-date=2020-03-13}}</ref>
On 24 March 2021, [[Central Bureau of Investigation|CBI]] filed a new suit against DHFL and its promoters Kapil Wadhawan and Dheeraj Wadhawan, wherein the later were accused of syphoning off the welfare subsidy fund of [[Pradhan Mantri Awas Yojana]] by creating 260,000 fake home loan accounts under the same scheme under the guise of a non-existent branch.<ref>{{Cite web|last=Correspondent|first=H. T.|date=2021-03-24|title=CBI books DHFL over fake accounts created in PMAY|url=https://www.livemint.com/companies/news/cbi-books-dhfl-over-fake-accounts-created-in-pmay-11616608277393.html|access-date=2021-03-25|website=mint|language=en}}</ref><ref>{{Cite web|title=DHFL Share Price Hits Lower Circuit After CBI Books Promoters For Creating Fake Accounts|url=https://www.moneycontrol.com/news/business/stocks/dhfl-share-price-hits-lower-circuit-after-cbi-books-promoters-for-creating-fake-accounts-6691161.html|access-date=2021-03-25|website=Moneycontrol|date=25 March 2021 }}</ref> The suit says, fake loans were granted worth ₹14,046 crore of which ₹11,755.79 crore were routed to shell corporations and citing these loans, subsidy amounts were claimed under [[Pradhan Mantri Awas Yojana]].<ref>{{Cite web|date=2021-03-24|title=CBI books DHFL for creating over 2 lakh fake home loan accounts under PMAY|url=https://www.hindustantimes.com/india-news/cbi-books-dhfl-for-creating-over-2-lakh-fake-home-loan-accounts-under-pmay-101616592758747.html|access-date=2021-03-25|website=Hindustan Times|language=en}}</ref><ref>{{Cite web|title=DHFL directors availed thousands of crores through fake loan accounts under PMAY: CBI|url=https://www.businesstoday.in/current/economy-politics/dhfl-directors-availed-thousands-of-crores-through-fake-loan-accounts-under-pmjay-cbi/story/434782.html|access-date=2021-03-25|website=www.businesstoday.in|date=24 March 2021 }}</ref>
== Operations ==
{{as of|June 2018}}, DHFL has 209 branches and 113 service centres.<ref>{{Cite web|url=https://economictimes.indiatimes.com/dewan-housing-finance-corporation-ltd/stocks/companyid-12024.cms|title=Dewan Housing Finance Corporation Share Price Live, Dewan Housing Finance Corporation Stock Price Today|website=The Economic Times|access-date=2018-02-01}}</ref> It also has a representative office in [[London]].
== References ==
{{reflist}}{{Financial services in India}}
[[Category:Housing finance companies of India]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]