Another Independent Director Resigns From DHFL’s Board

A second Independent director quit Dewan Housing Finance Corporation Ltd.'s board in less than a month as the mortgage lender battles concerns stemming from Cobrapost's allegations of financial irregularities.

VK Chopra submitted his resignation on March 11, according to the letter filed with Ministry of Corporate Affairs. “In view of the recent developments like drastic fall in credit rating of the company as also the same being under credit watch, sizable erosion in market capitalisation and market perception, I wish to resign from the position of independent director of Dewan Housing Finance Corporation,” the resignation letter said.

The mortgage lender has accepted his resignation the same day, it said in an exchange filing. The company said it's in the process of appointing new independent directors and reconstituting the board committee, which it shall announce by March 31.

Chopra's exit follows Vijaya Sampath's resignation as independent director. That comes as the company faces scrutiny after Cobrapost's report. BloombergQuint's investigation also found how money lent by Dewan Housing Finance found its way into firms connected to the Wadhawan family—the promoters of the housing finance company.

Chopra's current term as an independent director was due to end on March 31, the filing said. The resolution for his re-appointment, which was passed by the shareholders on March 4, shall be ineffective in view of his resignation, it said. Chopra had joined DHFL as an independent director in May 2008.

After the resignation of Chopra and Sampath, DHFL's board now has two independent directors. Of the total four directors, while two are independent directors, the other two being promoters—Kapil Wadhawan and Dheeraj Wadhawan.