As per various media reports, the Securities and Exchange Board of India (SEBI) is seeking to probe into whistleblower allegations against Piramal Capital & Housing Finance Ltd (PCHFL) about loans that it has taken over from the now-defunct DHFL. To entities linked to the promoters of the Piramal Group, loans were transferred at a huge discount. The whistleblower has alleged that because of this there has been a loss of funds to public shareholders of a listed entity, Piramal Enterprises Limited (PEL). This is based on a Business World report.
In 2021, PCHFL — a wholly owned subsidiary of Piramal Enterprises — purchased DHFL for Rs 34,250 crore using cash and issuance of debt instruments. PCHFL is also said to have assigned loans, at deep discounts, to Encore Natural Polymers and APRN Enterprises. They allegedly paid Rs 650 crore over what they got for these loans, thus harming the shareholders of PEL by paying spoiler prices to DHFL's original borrowers.
Both Encore and APRN are reported to be indirectly connected to the promoters of Piramal Group, where the merchant shares links with members of the staff from both Piramal and Encore Natural Polymers, as per the Whistleblower letter. Reports state that these transactions helped Encore and APRN earn immediate profits.
The whistleblower, based on this information, is now seeking answers about the origin of the funds which may have been made by the Sahana Group - linked with Sudhakar Shetty, who is a borrower who defaulted on dues - and that it appears to have generated money after selling real estate assets under stress. CBI is already enquiring about financial irregularities within DHFL, including the diversion of over Rs 14,000 crore.
There has been no immediate response from the Piramal Housing and SEBI on these reports.
