Legal Cloud Brews Over DMI Finance as MUFG’s $334 Million Big Bet Sparks Transparency Uproar.

DMI Finance, a Delhi-based NBFC, recently secured a $334 million investment from Japan's MUFG Bank. However, it has come under heavy legal scrutiny, with multiple FIRs filed against it, including allegations of fraud, forged documents, and failure to appear before investigators.

By Siddhart Rao Updated: Aug 5, 2025, 18:37 IST

One of the key complainants, Advocate Deepak Kumar Gollen, Senior Manager – Litigation at the Law Offices of Kr. Vivek Tanwar Advocate, who filed FIR No. 76/2025 in Gurugram, stated:

“The allegations are serious and supported by documentary evidence, including a falsified legal document carrying a forged law firm seal. This FIR was filed to ensure accountability and to bring attention to the severity of the misconduct.”

In March 2025, DMI Finance Private Limited, a Delhi-based non-banking financial company (NBFC), secured a $334 million equity investment from Japan’s MUFG Bank (Mitsubishi UFJ Financial Group).

This latest development raises questions about transparency and investor due diligence in India. Industry insiders point out that none of the ongoing legal cases against DMI Finance Private Limited were publicly disclosed during the funding process, raising critical concerns about non-disclosure and investor risk as India pushes toward becoming a USD 5 Trillion Economy by 2027-2028.

DMI Finance Private Limited has been under mounting legal and regulatory scrutiny. Multiple FIRs have been filed against it. Despite official summons, key individuals associated with DMI have reportedly failed to appear before investigators, citing their absence from the country. This has further fuelled suspicions of intentional evasion.

Multiple sources have claimed that financial liabilities and complaints against DMI Finance could amount to several hundred crores. In response, there is a growing call to escalate the matter to the Serious Fraud Investigation Office (SFIO) to ensure a centralized and transparent investigation. The case is now being compared to past financial debacles such as the ₹429 crore Seva Vikas Cooperative Bank scam and the ₹8,000 crore Adarsh Credit Cooperative Society collapse, both of which began with ignored early warnings.

The Reserve Bank of India had earlier flagged serious irregularities in DMI Finance’s operations. Although the temporary lending ban was later lifted, the action highlighted discrepancies in pricing policies, interest spreads, and adherence to fair lending norms. The RBI’s intervention marked the first regulatory red flag, but subsequent developments reveal a much deeper problem.

DMI Finance had been named in multiple First Information Reports (FIRs) across Gurugram, Noida, and Agra. In addition to FIR No. 76/2025, FIR No. 0486/2022, filed in Noida Sector 113, alleges a ₹67 crore fraud involving forged board resolutions and diverted loan funds under the guise of a joint real estate project. FIR No. 1653/2019, from Noida Sector 24, links DMI to a cyber fraud involving the misuse of identity proofs for unauthorized loans. The fourth, an FIR registered in Agra under ID 31621046220025, implicates DMI in another case of major financial fraud and criminal breach of trust—reinforcing the company’s questionable practices and escalating legal troubles.

Even if some of the complaints against DMI Finance are yet to be proven or fully verified, it is imperative that the Reserve Bank of India and the Ministry of Finance treat the matter with utmost seriousness. The financial system cannot afford another large-scale failure, especially at a time when global instability and regional wars have left many common people financially vulnerable. Protecting small investors and public confidence must remain a top priority—delays or oversight could lead to irreversible losses in already brittle times.