National Housing Bank Orders Forensic Audit of SRG Housing Finance
· Business · Economic Times
The National Housing Bank has launched a forensic investigation into Udaipur-based SRG Housing Finance to examine potential financial irregularities. Auditors will verify whether fictitious loans were created, repayment entries manipulated, and the same loan assets offered to multiple lenders. The National Housing Bank issued a request for proposal on October 3 to appoint an independent audit firm for the probe. An earlier internal inquiry by the regulator had red-flagged suspected fictitious loans worth ₹300-400 crore, amounting to roughly a third of the lender's reported loan book. The company had assets under management of ₹1,076 crore as of June, representing a 35% increase from the previous year. Both the National Housing Bank and SRG Housing Finance did not respond to queries regarding the investigation.
Why it matters
The forensic audit directly impacts SRG Housing Finance's shareholders, lenders, and retail customers as regulators scrutinize the authenticity of its loan portfolio and financial records.
Read the original report — Economic Times
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