A housing finance company is set to face a forensic audit following concerns over possible irregularities in its loan accounts and financial records. The investigation will examine whether fictitious, dummy or unsupported loan accounts were created and recorded in the company’s books. The regulator has invited audit firms to conduct an independent examination of the company’s loan portfolio. The audit will verify the existence of borrowers and review customer identification records, loan approvals, disbursements, bank accounts, supporting documents and repayment transactions. A key focus will be on identifying whether repayment entries were manipulated or incorrectly recorded. Auditors will also examine whether loan amounts were actually transferred to genuine borrowers and used for the purposes stated in the loan documents. The investigation will further examine whether the same loan assets were offered as security to more than one lender. Any such irregularity could have significant implications for the company’s financial position and its lenders. The regulator has also sought a loan-by-loan assessment of non-performing assets as of March 31, 2025, and March 31, 2026. The review will cover overdue amounts, loan reversals, restructuring arrangements and subsequent recoveries. If any irregularities are identified, the appointed auditor will be required to calculate their financial impact. The audit is expected to help determine the extent of potential issues in the company’s lending operations and financial reporting. The audit firm will conduct the investigation within a specified timeframe and submit a detailed report to the regulator. The exercise is part of broader regulatory efforts to strengthen transparency, verify loan records and identify potential financial risks in the housing finance sector.