Manraj Housing Finance Limited is an Indian **Non-Banking Financial Company (NBFC)** headquartered in **Jalgaon, Maharashtra**. While historically positioned within the housing finance sector, the company is currently characterized by severe financial distress, prolonged operational inactivity, and significant legal entanglements with federal investigative agencies. --- ### **Corporate Identity and Governance Framework** The company operates under the regulatory oversight of the **Reserve Bank of India (RBI)** and **SEBI**, governed by the **Companies Act, 2013**. | Attribute | Details | | :--- | :--- | | **Corporate Identification Number (CIN)** | **L65922MH1990PLC055000** | | **Registered Office** | **3, Pushpa Apartments, General Vaidya Chowk, Jalgaon-425002** | | **Core Business Focus** | Housing Finance and related financial services | | **Chief Financial Officer (CFO)** | **Sanjiv Kisan Wagh** (Appointed **March 25, 2025**) | | **CFO Remuneration** | **Rs. 23,500 per month** | | **Statutory Auditor** | **Ratan Chandak & Co LLP** | **Operational Status:** * **Inactivity:** The company has remained **non-operational for over 4 years**. * **Inventory & Assets:** Management conducts physical verification of inventory and maintains that procedures are adequate for the business size. However, the company does **not engage in the revaluation** of Plant and Equipment, Right of Use (RoU) assets, or intangible assets. * **Accounting Integrity:** The company failed to implement the mandatory **audit trail feature** in its accounting software as required by **Rule 11(g)** of the Companies (Audit and Auditors) Rules, 2014, which compromises the reliability of historical financial records. --- ### **Critical Audit Findings and Financial Reporting Failures** The company’s financial reporting has deteriorated from a "Qualified Opinion" to a consistent **"Adverse Conclusion,"** indicating that the financial statements do not provide a true and fair view of its fiscal health. **Audit Opinion History:** | Period Ended | Audit Opinion / Conclusion | Key Auditor Remark | | :--- | :--- | :--- | | **March 31, 2024** (Annual) | **Qualified Opinion** | Financials presented per **Ind AS 34**, with specific exceptions. | | **June 30, 2024** (Quarterly) | **Adverse Conclusion** | Failure to disclose information required under **Regulation 33 of SEBI LODR**. | | **December 31, 2025** (9 Months) | **Adverse Conclusion** | Statements do **not give a true and fair view** of net loss or financial position. | **Primary Reporting Deficiencies:** * **Departure from Standards:** Significant non-disclosure and departures from **Ind AS 34** and **Section 133 of the Companies Act, 2013**. * **SEBI Non-compliance:** Consistent failure to disclose information in the manner prescribed by **SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015**. * **Understated Losses:** Due to the adverse conclusions, the reported **Net Loss** figures are considered unreliable and likely understated. --- ### **Solvency Crisis and Debt Default Profile** Manraj Housing Finance is currently facing a severe liquidity crisis, characterized by a **negative net worth** and a total breakdown of debt servicing. **The ASREC (India) Ltd. Default:** The company defaulted on a loan originally held with **Jalgaon Peoples Co-Op. Bank Ltd.**, which was subsequently assigned to **ASREC (India) Ltd**. * **Default Date:** The loan has been in default since **February 2020**. * **Revoked Settlement:** A **One Time Settlement (OTS)** approved in February 2021 was **revoked in May 2024** due to the company's failure to meet repayment obligations. * **Unrecorded Liabilities:** Management has ceased providing for interest on this loan since **March 2020**. This has resulted in a massive understatement of liabilities. **Financial Summary of Defaults (as of January 2026):** | Item | Amount (₹ Crore) | Status | | :--- | :--- | :--- | | **Principal Loan Balance** | **6.87** | In Default | | **Uncharged Interest (to Mar 2024)** | **3.90** | Not provided in books | | **Penal Interest (to Mar 2024)** | **0.52** | Not provided in books | | **Uncharged Interest (Apr 2024 – Dec 2025)** | **2.33** | Not provided in books | | **Total Understatement of Liability** | **6.75** | **Per Auditor's Adverse Opinion** | **Net Worth Erosion:** As of mid-2025, accumulated losses reached **₹5.27 crore**, leading to a **negative net worth**. Continued cash losses further threaten the company’s status as a **"Going Concern."** --- ### **Legal Risks and Asset Attachment (PMLA)** The company’s core asset base is almost entirely compromised by federal investigations, creating extreme uncertainty regarding recoverability. * **ED Investigation:** The **Enforcement Directorate (ED)** is investigating the company under the **Prevention of Money Laundering Act (PMLA)**. * **Asset Attachment:** Approximately **99% of total assets**—including advances, deposits, and receivables for property purchases—are held by **Related Parties** and have been **attached by the ED**. * **Litigation Status:** The Board has authorized appeals before the **Appellate Tribunal** against orders issued by the Adjudicating Authority under the **Money Laundering Act, 2002**. * **Benami Transactions:** As of May 2025, the company reports **no pending proceedings** specifically under the **Prohibition of Benami Property Transactions Act, 1988**, though PMLA proceedings remain the primary legal threat. --- ### **Related Party Entanglements and Capital Mismanagement** The company’s balance sheet is heavily concentrated in transactions with related parties, raising significant concerns regarding the prioritization of funds. * **Liability Concentration:** Approximately **65% of total liabilities** consist of unsecured loans from related parties. These parties also hold beneficial interests in the properties for which the company’s advances were originally issued. * **Questionable Fund Diversion:** In 2024, the company liquidated investments totaling **₹51.95 Lakhs**. Despite the company’s existing default on bank borrowings, **₹46.80 Lakhs** of these proceeds were immediately withdrawn by a **promoter borrower**. * **Conflict of Interest:** The overlap between borrowers, promoters, and those holding beneficial interests in attached properties suggests a high risk of financial impropriety and lack of independent oversight.