The share prices of Dewan Housing Finance Corporation (DHFL) went down to the lowest price. The prominent reason behind the downfall includes involvement in fraud by the promoters Kapil Wadhawan and brother Dheeraj.
The charge implied on them revolves around participation in fraud and money laundering activities.
Allegedly they created 2.60 lakh fake home loan accounts under the government scheme. It was Pradhan Mantri Aawas Yojana.
According to the agency, they generated a huge amount of money about Rs 14,046 crore under the scheme. A portion from this amount of Rs 11,755.79 went into these accounts.
Additionally, the CBI identified the redirection of money into these accounts. The accounts created were under the name of shell companies. These are kind of companies which do not perform operating activities. However, these companies have completed the incorporation and registration.
Furthermore, the founders already have charges of other two cases which are the Yes Bank scam and UP Power Corporation scam.
The scheme involves a motive to provide grants to economically poor people, for land purchase and house construction. The grant also applies to low and middle-income groups.
The price went 5 % down the lower circuit. The price on BSE was Rs 16.65. On the other hand, the price on NSE was Rs 16.60.
The trading on NSE was low by 4.85 percent. The intraday high was at Rs 16.85. Whereas, the intraday low marked at Rs 16.60.
Also, on BSE the opening price was Rs 16.75 which was lower than the closing price of Rs 17.5.
Check all the recent news updates and share market updates