Dailymirror.news, August 4,2025: In March 2025, Delhi-based non-banking financial company (NBFC) DMI Finance Private Limited secured a significant equity infusion of $334 million from Japan’s MUFG Bank (Mitsubishi UFJ Financial Group). While the investment marked one of the largest global bets on an Indian NBFC in recent times, it has now come under intense scrutiny over issues of transparency and due diligence.

Ongoing Legal Challenges Undisclosed During Funding

Industry experts are raising red flags over the non-disclosure of ongoing legal and regulatory cases against DMI Finance during the investment process. Sources reveal that multiple FIRs and an Enforcement Case Information Report (ECIR) had already been filed against the company prior to the deal. However, this critical information was not made public, sparking concerns about the risk to investors and broader implications for India’s financial ecosystem, especially as the country aims to achieve a $5 trillion economy by 2027-28.

Mounting Legal and Regulatory Pressure

DMI Finance is currently facing investigations by the Enforcement Directorate (ED) and has been named in several FIRs across Gurugram, Noida, and Agra. Key individuals associated with the firm have allegedly failed to comply with official summons, citing overseas travel—leading to suspicions of deliberate evasion.

Insiders estimate that total liabilities and pending complaints against the firm could run into hundreds of crores. As a result, there is growing demand for a centralized probe by the Serious Fraud Investigation Office (SFIO), drawing parallels with past scams like the ₹429 crore Seva Vikas Cooperative Bank fraud and the ₹8,000 crore Adarsh Credit Cooperative Society collapse.

RBI Red Flags and Lending Irregularities

The Reserve Bank of India (RBI) had earlier flagged serious irregularities in DMI Finance’s lending operations. Though a temporary lending ban was eventually lifted, the central bank had cited issues in interest spread policies, pricing mechanisms, and fair lending practices—marking the first major regulatory alert.

Details of Key FIRs Against DMI Finance

  • FIR No. 76/2025 (Gurugram) – Accuses DMI of using a forged legal document and fake law firm seal to extract money from a businessman.
  • FIR No. 0486/2022 (Noida Sector 113) – Alleges a ₹67 crore fraud involving forged board resolutions and diversion of loan funds in a fake real estate joint venture.
  • FIR No. 1653/2019 (Noida Sector 24) – Links DMI to a cyber fraud involving misuse of identity documents to issue unauthorized loans.
  • FIR ID 31621046220025 (Agra) – Involves accusations of criminal breach of trust and large-scale financial fraud.

The Call for Stronger Regulatory Oversight

While some of these allegations are still under investigation or sub-judice, the scale and seriousness of the complaints underscore the urgent need for swift regulatory action. Financial analysts stress that protecting investor trust and systemic stability is paramount—especially amid global economic uncertainties and domestic fiscal pressures.

The Ministry of Finance and the RBI are being urged to take proactive measures to prevent another catastrophic financial failure. As the nation moves toward ambitious economic goals, oversight and transparency in financial markets must remain non-negotiable.