Prudential Financial issues clarification on future plans amid DHFL saga

US-based Prudential Financial Inc, which holds 49 per cent stake in DHFL Pramerica Life Insurance, said it remains committed to India and is scouting for a new local partner for the insurance company. Mortgage firm DHFL, which has 51 per cent in DHFL Pramerica Life Insurance, looks to exit the insurance JV.

"Working together with DHFL, we will seek a new majority locally owned and controlled shareholder for DPLI to help facilitate the monetization of DHFL’s equity stake," Prudential Financial Inc senior vice president (International Businesses) James Weakley said in a statement. While DHFL may reduce or exit its equity stake in DPLI, Prudential Financial's intention is to continue to play an active role in supporting the life insurance industry of India, he said.

DHFL along with other NBFCs came under pressure following a series of default by group companies of IL&FS. Last week, Cobrapost alleged that Dewan Housing Finance Corporation Ltd (DHFL) through layers of shell companies allegedly syphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore.

The expose alleged that the scam has been pulled off 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. It alleged that this was done through their proxies and associates, which have in turn passed the money on to the companies controlled by the Wadhawans.

(With inputs from agencies.)