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Can Fin Homes stock is under pressure. The Reserve Bank of India (RBI) is set to probe fraud detection in 37 accounts of Can Fin Homes. In an exclusive interview with CNBC-TV18, MD and CEO Girish Kousgi clarified that they haven't heard anything from the regulators and that there are no "serious irregularities".

“We have not heard anything from the regulator, either from the National Housing Bank (which is the regulator for regulation and licensing of housing finance companies) or the RBI,” Kousgi said.

Can Fin Homes stock has been losing for the last four days and has fallen 20.09 percent returns in the period. The stock touched an intraday low of Rs 466.55, dropping 14.47 percent, a new 52 week low.

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Kousgi said that based on the complaint that the firm received from the NHB, it very clearly says the complainant has not mentioned his or her identity. "Now, based on that, during the audit process, we figured out that in one branch, there were cases where the ITRs were fake," he said.

The CEO said that for all these accounts, customers were available, the properties were theirs, all details were KYC compliant, and all the customers were repaying the loans. He said: "The ITRs were fake, and therefore, we declared Rs 3.93 crore or 37 accounts as fraud to the NHB. We have tagged these accounts as non-performing assets (NPAs), and they are fully provided for.”

There were reports that the Canara Bank had appointed four business heads from their entity at Can Fin Homes. Kousgi cleared that they have not appointed any business heads but have sent a team to support Can Fin Homes. "They have sent a team for support — one in risk, one in audit, and one in general administration," he said.

He said the audit committee requested Canara Bank to do an audit. "As per rules, Canara Bank, as a parent, can do an inspection only and, therefore, an inspection was conducted. Out of that, in one branch, we figured out that in 37 accounts, the ITRs were fake. Other than this, all the other queries are normal in nature,” Kousgi said.

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First Published:May 9, 2022 2:20 PM IST