A major financial disclosure issue has surfaced after promoters of a Star housing finance company informed regulators about alleged discrepancies worth ₹120 crore in the company’s balance sheet. The matter has now reached the Securities and Exchange Board of India following a formal complaint by investor firm Arkfin Investors and Advisors Pvt. Ltd..
According to sources, the promoters had on April 4, 2026, informed the National Housing Bank(Regulator of housing finance companies) about incorrect reporting of transactions amounting to ₹120 crore in the company’s financial statements. The disclosure was reportedly made to ensure that investors were not misled and that their interests remained protected.
Following the disclosure, NHB initiated a forensic audit into the company’s financial records. The audit process has been underway for the past week, sources said.
Arkfin, which is among the company’s major investors, has now approached SEBI seeking intervention in the matter. The complaint mailed to SEBI by Anil Sachidanand, MD Arkfin, alleges that incorrect information regarding the ₹120 crore transactions was reflected in the balance sheet, raising concerns over transparency and corporate governance.
The development has also raised questions over regulatory oversight, as NHB — the regulator responsible for monitoring housing finance companies and their financial transactions — allegedly failed to detect the discrepancies earlier. The issue reportedly came to light only after the promoters themselves alerted the regulator.
Investors are now hopeful that SEBI’s intervention and the ongoing forensic audit will help establish accountability and safeguard the interests of shareholders.