Star Housing Finance Hits 5% Upper Circuit Despite Allegations of ₹120 Cr Fraud

Synopsis: Star Housing Finance Limited has filed a Fraud Monitoring Report with the National Housing Bank following a snap audit that flagged a suspected “phantom loan book” worth approximately Rs 120 crore. The disclosure, made on April 6, 2026, has triggered a forensic audit and intensified regulatory scrutiny around the company’s governance and internal controls.

Star Housing Finance Limited officially reported a suspected “phantom loan book” fictitious or non-existent loans to the National Housing Bank via a Fraud Monitoring Report-1 (FMR-1), simultaneously filed with the RBI, on April 6, 2026. The suspected amount stands at approximately Rs 120 crore, though it must be noted these findings are not yet legally established.

This is not the sign of trouble for Star Housing Finance Limited. Two of the company’s board members Mr. Pradip Kumar Das and Mr. Ajith Kumar Lakshmanan quit their jobs recently. They said that they did not think the company was being run well and that there were some problems with how the company was controlled. They also said that the company was having some trouble with money, which’s a big concern.

Star Housing Finance has seen a near-total erosion of investor wealth. As of April 7, 2026, the stock closed at Rs 4.45 on the BSE with a market capitalization of approx Rs 35.14 crore. 

Despite the alarming disclosures, the stock hit its upper circuit of 5% today, a move that follows a devastating year-to-date decline of over 67.40%. The 52-week high of Rs 38.03 against a near-record low of Rs 3.67 tells the full story of collapsed investor confidence.

Star Housing Finance Limited is a company that helps people in areas buy homes. They are regulated by the National Housing Bank. The company is, in trouble because of the suspected fraud. The amount of money that is suspected to be involved is four times the company’s total value. This is a serious problem, and investors should be very careful.

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