RBI Examines Accounts of DLF + Unitech and Others

In order to avoid a crisis like situation in the US and a Fake Accounting Scam like of Satyam, RBI has woken up, finally and is examining the books of accounts of 10 Real Estate Firms. The examination also includes actual verification of books of accounts, deposits etc and cross checking the same with the respective banks.

Realtors in RBI's Hall of Accounting Shame include - Anantraj Industries, Akruti Citi Ltd, Ansal Properties, DLF, HDIL, Indiabulls Real Estate, Phoenix Mills, Peninsular Land and Unitech.

The goal is to correct the debt-equity ratio, solvency, state of liquidity to avert defaults, cash flows and profit margin in the current operations.

The report further says,

Sources said these real estate companies had raised long-term loans from banks and had placed commercial paper amounting to thousand of crores to raise short-term financing from the mutual funds.

The mutual funds, in turn, got a major part of the subscription to their schemes from the banks who held public deposits. This means a default on even a single commercial paper will impact the mutual funds, the banks and ultimately public deposits.

Hopefully, RBI gets tough on these shady realtors.