Reports of some fraud or the other.

So much so that yesterday we covered a scam

NBFCs were running. We are here with yet another scam story. The story of India's
biggest bank frauds also rung by an NBFC. So let us uncover how Devon housing
finance limited looted over 34,614 crore rupees from 17 Banks. Welcome back to
revolution read on a daily podcast where we break down one story from the world of
business and finance. Click on the subscribe button to never miss an update from
us. Here's your story for today. DHFL came into existence in 1984 with the tagline
changing rules changing lives.

The headline was apt DHFL would be bending many rules set by authorities and
changing the lives of many bankers for the worst. But we'll come to that part in a
bit. Back in 1984 DHFL was just a simple NBFC with humble beginnings. Slowly and
steadily the real estate financing company became India's third largest.

And as the company grew the ambitions
and diligent one.Money from banks and
customers, they wanted this money for
involved 17 banks over 75 businessmen
associated with none other than doubt
of its promoters also grew. By 2010 couple
mutual funds and loaning it to their
themselves.Began a scan so monumental that it
and associates and even to gangsters
Ibrahim.

So they kept taking money from banks as usual. In fact, they borrowed as much as
42,871.4 to grow rupees during 2010 to 2018, but when it came to returning these
loans the one brothers claimed the DHLF was seen a record number of non performing
assets and couldn't return this money.

This happened around the time that IL and FS another NBFC crashed. So the lie was
plausible NBFCs were a risky investment. But this lie was short-lived in 2019 a
report by Cobra Post claimed that DHFL wasn't a failure it was a scam. Now this
obviously got everyone's attention, especially the banks that had loaned money to
DHFL and while DHFL claimed this was fake news banks.

Appointed KPMG to investigate the NBFC.G auditors were in for the time of their
lives these years got a close look into one of the biggest camps in the world and
boy were they in for a surprise.Years would be discovered. First KPMG conducted a
detailed study of 15,000 crore rupees.

Default. Out of this.

Invested in mutual funds. Second the rest of the 34th thousand crore rupees was
given out as loans to.Belonging to either the promoters and directors or their
relatives loans worth 14,000 crore rupees were given to 25 companies that had less
than one lakh rupees of profits. These were shell companies.

This report sent the world into shock.Union bank immediately filed a complaint
against DHFL and since the complaint back in 2020 more and more juicy details have
been coming out about the scam in total 87 shell companies and two lakh sixty
thousand fictitious borrowers using a software were created by DHFL promoters, they
were also accused of giving loans to companies reportedly belonging to Iqbal memin
and Chhota Shakil gangsters allegedly connected to thou they brine and that's not
all yes bank was.

Also involved in this mess. Yes, bank invested. $4,727.

Worth of loan to it.

Core rupees to do it urban ventures a firm belonging to yes banks founders family.
There's much more to this case with new information released every other day.
Of damage.And it is our auditors and our regulators who can prevent this from
happening but to often these superheroes reach too late to the scene after the
crime has been committed all they can do is try to prevent more such cases in the
future. What do you think can be done to prevent such scams in the first place?

For now, it's a rap. Thank you for listening to this episode. We'll be back with
more to model until then read on.