The National Housing Bank (NHB) has stepped up regulatory scrutiny by appointing an independent forensic auditor to investigate SRG Housing Finance.
The probe has been initiated following serious allegations regarding the existence of fictitious loan accounts valued between ₹300 crore and ₹400 crore.
Key Highlights of the Regulatory Action
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Scope of the Forensic Audit: The appointed auditor will comb through the housing finance company’s loan books, underwriting standards, disbursement records, and accounting practices to determine the veracity of the suspected bogus accounts.
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Governance and Compliance Pressure: For housing finance companies (HFCs), regulatory oversight by the NHB is stringent. The emergence of potential fictitious assets raises major red flags regarding internal controls, audit mechanisms, and risk management frameworks.
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Market Impact: Following the development, investor sentiment toward the company’s governance standards is expected to face intense scrutiny as markets await the findings of the forensic review.
