DMI Finance Private Limited, a Delhi-based non-banking financial company (NBFC), is currently under investigation by multiple regulatory and enforcement bodies. The Enforcement Directorate (ED) has registered an Enforcement Case Information Report (ECIR) against the company. According to officials, individuals associated with DMI have not responded to summons, with some reportedly outside the country.
Regulatory and legal scrutiny intensifies
This development follows earlier regulatory intervention by the Reserve Bank of India (RBI), which imposed a temporary lending ban citing compliance issues. While the ban was subsequently lifted, the RBI action noted concerns regarding pricing structures, interest rate spreads, and adherence to lending practices. These findings marked the beginning of scrutiny on the company’s operations.
In addition to the ED probe, a First Information Report (FIR) has been registered in Gurugram alleging the use of a legal document with a forged law firm seal by DMI Finance in a dispute involving financial transactions with a businessman. Legal proceedings are ongoing.
Funding round prompts questions
In March 2025, DMI Finance secured a $334 million equity investment from Japan’s MUFG Bank. Industry sources indicate that legal and regulatory issues were not publicly disclosed during the funding round. This has raised concerns regarding disclosure standards, investor due diligence, and associated risks.
There are also reports of unresolved financial complaints and liabilities amounting to several hundred crores. Some industry participants have called for an inquiry by the Serious Fraud Investigation Office (SFIO) to ensure independent investigation and centralised oversight.
The case is being compared in financial circles to earlier NBFC and cooperative bank cases where early warnings were not acted upon. As investigations continue, regulatory clarity and prompt action are being seen as essential to preserving confidence in the financial system.
