Buyers may turn their back on DHFL over KPMG audit report concerns

Bank debt-to-equity conversion will depend on forensic audit report details

A scathing forensic audit report by KPMG, apart from the ongoing litigation, would deter players from bidding for Dewan Housing Finance Corporation (DHFL), whose board was superseded by the Reserve Bank of India (RBI) on Wednesday, citing governance concerns and defaults.

Ongoing investigations by government agencies, including a Central Bureau of Investigation probe ordered by the Uttar Pradesh (UP) government into UP Power Corporation’s employee provident fund trusts, and reports of a Serious Fraud Investigation Office probe are other concerns of the bidders. The housing finance company has defaulted on Rs 84,000 crore of debt to Indian lenders, including banks, mutual