MHA issues lookout notice against promoters of DHFL
Moneylife Digital Team 28 May 2019
The Ministry of Home Affairs (MHA) has issued a lookout notice against DHFL promoters in an investigation pertaining to shell companies, reports ET Now in a newsbreak. 
 
According to the channel this follows a request of the Ministry of Corporate Affairs (MCA), which had earlier found shell companies associated with DHFL, the controversial company, which is facing an acute liquidity crunch in the wake of the IL&FS (Infrastructure Leasing and Financial Services) debacle. 
 
Less than a few days ago, the liquidity crisis at DHFL worsened and it stopped permitting premature withdrawal of deposits. It also stopped accepting new deposits. 
 
On 15th and 17th May, in a two part article by Moneylife had exposed how the crisis at the shadow banking company was unravelling after the delayed downgrade by the rating agencies. The article argued that DHFL’s promoters, driven by and the race to increasing market-capitalisation, “simply lost sight of solvency itself which is now threatening its very survival”.
 
The DHFL stock has lost over 82% of its market value in the past year. 
 
At the end of January, Cobrapost after a sting operation had alleged that the promoters had siphoned off Rs31,000 crore to create private wealth through a network of shell companies.
 
Even earlier, in December 2018, Moneylife wrote how loans to promoters had structured a deal that allowed them to borrow from mutual funds and indirectly inject money into DHFL to boost its networth. 
Comments
Prabhu
5 years ago
What about secured NCDs of DHFL?,Ashraya deposits of 14 months maturity?
lalit
5 years ago
What is the status of secured ncds issued by dhfl in wake of the current crisis
Ramesh Poapt
5 years ago
acid test of regulators/govt to tackle DHFL issue, a catch 22!
Ajay Sharma
5 years ago
"...reports ET Now..." Is this credible journalism now? Please improve your standard of journalism. I refuse to believe the editors of Moneylife knowingly let this be published.
Sucheta Dalal
Replied to Ajay Sharma comment 5 years ago
What is the problem? The Economic Times and ET NOW are clearly credible news sources with a far wider coverage than us. Why would our readers not get the benefit of breaking news with full credit being given to the original source?? Very curious about your apparent anger -- we are a tiny boutique publication that cannot possibly do everything, everywhere with very limited feet on the ground!!!
Ajay Sharma
Replied to Sucheta Dalal comment 5 years ago
Thanks for the reply. (Please note that I am a loyal fan of yours and Mr Basu's, having read several of your books and make it a point to read all of your Moneylife articles.) I beg to differ that ET is a credible news source; they are popular because they are everywhere, not because they are good. The hallmark of good journalism is credibility that comes from having verifiable sources; more often than not this credibility is attributed to journalists and not news companies (that may have vested interests and ET's business model ensures it does). If Moneylife is so tiny that it cannot verify every rumour/fact, then why bother? Stick to what you're good at! Don't get caught up in the race the publish first for the sake of clicks.
My issue with much of your DHFL coverage, and NBFC reporting of late, is that it has been useless to stakeholders. Moneylife has merely been repackaging mainstream news without any value-add (it has not even added its own credibility to the news!). If you or another author were to come out and say "a source reported to Moneylife..." that would be valuable information. Articles like this just add to the noise. You might as well just syndicate these types of articles.
Sucheta Dalal
Replied to Ajay Sharma comment 5 years ago
Thank you Mr Sharma . We appreciate your view. We also have readers who want some important pieces of news included on our page, since they rely only on Moneylife. Please allow us to look at the interest of all readers. One solution to your issue is to skip some of these reports that you are uninterested in. You are also entitled to your views on ET -- but this is a simple newbreak. After 30 years in journalism and long years in Times of India, I can tell you that newsbreaks often go to the publications that have maximum reach. That is how it works. Social media has leveled the field a bit in recent years, since the NDA government often releases information on twitter. Best wishes
Praveen V
Replied to Sucheta Dalal comment 5 years ago
Thanks Sucheta .... Aggregation should be part of todays journalism [with due credits given] because by sharing you are appreciating the other work and giving more information, visibility and getting more for your readers ..
Mohan Krishnan
5 years ago
Immigration Officers will go on strike soon due to heavy workload caused by Crony Elites.
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