DHFL stocks close 16 percent lower, firm denies Corporate Ministry probe

Stocks of Dewan Housing Finance Corp (DHFL) closed 16 percent lower on Thursday after reports emerged that the Ministry of Corporate Affairs (MCA) may probe allegation of a Rs 31,000-crore scam involving the company. The company in a BSE filing on Thursday, however, denied receiving any communication from the Ministry of Corporate Affairs with regard to a probe against the company.

Stocks of the private housing finance company slumped nearly 20 percent at one point during the day's trading and closed at Rs 135.85 per share, down 15.93 percent. The reports of an alleged MCA probe comes days after the investigative media organisation Cobrapost alleged that DHFL promoters routed around Rs 31,000 crore through dubious companies and parked it outside India to acquire assets. The company on Tuesday rejected the allegations. DHFL said it had met all its obligations to its lenders by paying them back over Rs 17,000 crore in the last three months.