[2][3] DHFL was established to enable access to economical housing finance to the lower and middle income groups in semi-urban and rural parts of India.

[10] DHFL filed a response with the Bombay Stock Exchange saying the allegations raised by Cobrapost were untrue.

[22] Additionally the trail of the loan given by DHFL to Sunblink real estate in 2010 lead to gangster Iqbal Mirchi, an accomplice of the organized crime mastermind Dawood Ibrahim.

The reasons cited by the banking regulator for the dismissal of the DHFL board of directors were: inadequate governance and the various defaults on its payment obligations.

[24] On 27 January 2020, the promoter of DHFL, Kapil Wadhawan was arrested under the Prevention of Money Laundering Act (PMLA).

The arrest was connected to his firm's alleged involvement in providing loans to the organized criminal enterprise of Dawood Ibrahim.

[27] On 24 March 2021, CBI filed a new suit against DHFL and its promoters Kapil Wadhawan and Dheeraj Wadhawan, wherein the later were accused of syphoning off the welfare subsidy fund of Pradhan Mantri Awas Yojana by creating 260,000 fake home loan accounts under the same scheme under the guise of a non-existent branch.