Forensic Audit Reveals Allegations of Financial Mismanagement and Fund Diversion at Dayal Institute of Medical Sciences Limited

Forensic Audit Reveals Allegations of Financial Mismanagement and Fund Diversion at Dayal Institute of Medical Sciences Limited​

A comprehensive investigation into the affairs of Dayal Institute of Medical Sciences Limited (DIMSL) has revealed serious financial irregularities, allegations of bogus expenditures, and the misrepresentation of funds involving the company's management and related entities. The findings point towards a structured financial design intended to misstate the true financial position of the company and confer wrongful gain upon connected parties, according to documents reviewed by interested parties.

The forensic audit was initiated following a decision by the Board of Directors in October 2025 after due diligence revealed several irregularities in the books of account regarding the management of the institute. M/s R.M. LALL & Co., Chartered Accountants, conducted the investigation into financial and other irregularites committed by previous management.

Key Findings on Irregularities and Fraud​

The forensic audit report highlighted multiple instances of alleged misconduct, including:

Bogus Expenditures and Fund Siphoning:
The audit identified bogus expenditures amounting to Rs.7,66,36,770.00. These expenses were booked under various heads during the period of investigation, such as Professional Fees (Rs. 3,53,02,059.00), Salary (Rs. 1,90,98,703.00), Performance Bonus (Rs. 1,07,18,064.00), and HRARs (Rs. 74,06,957.00). The audit concluded that since the company was non-operational and confined to earth excavation and initial foundation-level construction, these large-scale expenditures—including those related to salary and bonuses—had no legitimate business requirement.

The report alleges that funds which were initially introduced as liabilities (such as advances against shares or loans) by the Chandan Group, were subsequently routed through sham expenditure entries to the staff and associates of the Chandan Group, effectively siphoning the funds while retaining them as liabilities in the company's books.

Misrepresentation of Receipts:
The books show that substantial amounts received from various entities belonging to the Chandan Group (Amar Singh Group) were initially recorded under "Call Money Received in Advance." However, these amounts were later shifted and reclassified across different ledger heads and disclosed in the Balance Sheet as Short-Term Secured Borrowing. The audit states this treatment is misleading because neither a security interest nor a registered charge existed in favor of the concerned entities, suggesting the receipts were repackaged as secured debt without legal basis.

Share Allotment Irregularities:
The investigation uncovered irregularities regarding the issuance of equity shares to Chandan Group entities during Financial Year 2021-22. While shares were issued to companies such as Chandan Healthcare Limited and Chandan Hospital Limited at Rs. 270 per share with Rs. 27 payable on allotment, statutory records indicate that the required allotment money was not fully paid by allottees from their bank accounts, despite the shares being issued for cash only.

Shareholding Structure​

As of March 31, 2026, the shareholding of the company is as follows:

Conclusion of the Audit Report​

The report concludes that the repeated creation of fictitious liabilities, booking non-genuine expenditures, and issuing shares without full realization of consideration collectively indicate a deliberate design to misstate the financial affairs of DIMSL. The records suggest a structured financial design intended to wrongfully retain and divert corporate funds to connected parties and entities. The findings warrant investigation into suspected economic offenses under applicable laws.

CHANDAN Stock Price Movement​

Shares of Chandan Healthcare Limited slipped today, settling at ₹226.30 after shedding 1.22% in trading. The equity traded between a low of ₹221.10 and a high of ₹228.05, with the stock seeing 38,400 shares exchanged during the session.