The Daily Brief From AAA to ashes: The DHFL story
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Aug 18, 2025 Uncover the financial deceit behind Diwan Housing Finance Corporation Limited's ₹22,000 crore fraud, including a fictitious branch that inflated loan disbursements. Explore the resilience of major Indian real estate players like DLF and Godrich Properties amidst market challenges. Dive into the latest advancements in real estate and business strategies, including DreamFox's new direction and significant reforms in India's nuclear sector. Stay informed on potential trading regulation proposals from SEBI and a recent credit rating upgrade from S&P Global.
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DHFL's Empire Looked Solid Until Scrutiny
- DHFL was a large housing financier that hid systemic problems until investigators dug deeper.
- Investigative scrutiny after IL&FS exposed how fragile its façade of retail loans really was.
Ghost Branch Masked Massive Transactions
- DHFL created a fictional Bandra branch that accounted for a huge share of its loan book on paper.
- Software routines generated fake small home loans to mask large secret payouts and tidy up reported performance.
Software Plumbing Fueled The Fraud
- Custom FoxPro routines split large payouts into thousands of fake retail disbursements and mirrored them into main accounts.
- Collection and top-up scripts kept fictional accounts showing punctual payments to sustain the illusion.