Ansal Properties orders forensic audit for 2016-26

What the company has announced

Ansal Properties and Infrastructure Ltd has appointed SLO Technologies Private Limited (AdvaRisk) as a forensic auditor to examine corporate transactions for a ten-year period, from April 1, 2016, to March 31, 2026. The company said the board initiated the forensic audit with effect from August 19, 2026. The decision follows a preliminary review of the company’s affairs that was undertaken after the board was reconstituted in February 2026.

The stated purpose of the forensic audit is to investigate transactions and identify whether there were instances of irregularities in financial governance. The company’s disclosures point to concerns that go beyond routine compliance checks, including issues around valuation, approvals, and the use of funds.

Why the board ordered a forensic audit

According to the company, the preliminary review flagged transactions involving possible undervaluation and alleged illegal dealings with related or connected parties. It also noted instances where adequate documentary support was not available, or requisite approvals were missing. These red flags prompted the board to escalate the exercise into a forensic review with a defined scope and time window.

The company also flagged concerns around the utilisation of borrowed funds for purposes other than those sanctioned. It further referred to possible diversion or misapplication of funds. Another area of concern mentioned in the disclosure relates to customer receipts and amounts that were required to be deposited in designated or project-specific accounts, including Real Estate Regulatory Authority (RERA) accounts.

Scope and period under review

The audit window is broad, covering April 2016 to March 2026. This means the forensic auditor can examine transactions across multiple financial years and corporate actions within that period, subject to the terms of reference set by the board.

By specifying the period, the company has provided investors and stakeholders a clear boundary for what the audit is intended to cover. The company’s statement links the audit initiation to the preliminary review conducted after February 2026, indicating that the audit is part of post-reconstitution governance actions.

Who is AdvaRisk and why it was chosen

AdvaRisk is a division of SLO Technologies Private Limited. The company said it selected AdvaRisk based on its experience in conducting third-party investigations for financial institutions, banks, NBFCs, and private equity investors. The appointment positions AdvaRisk as the forensic auditor for the stated investigation of corporate transactions.

Separately, Ansal Properties also noted the appointment of M/s SLO Technologies Private Limited as Transaction Auditor. The disclosure, as presented, includes both the forensic audit appointment (AdvaRisk) and a transaction audit role associated with SLO Technologies.

Other audit and governance appointments announced

Alongside the forensic audit, the company disclosed multiple audit-related appointments aimed at strengthening governance. The board approved the appointment of M/s MRKS & Associates, Chartered Accountants, as statutory auditors for the term from the conclusion of the 58th Annual General Meeting (AGM) until the conclusion of the 63rd AGM to be held in 2030.

The disclosure also notes that MRKS & Associates had earlier been appointed by shareholders at the 53rd AGM held on September 28, 2020, for a period of five years up to the conclusion of the 58th AGM to be held in 2025.

Other appointments mentioned include Ms. Vanita Agarwal as Secretarial Auditor for FY 2025-26, M/s Roni & Associates as Secretarial Auditor for FY 2025-30, and M/s J.D. Associates as Cost Auditor for FY 2025-26.

Financial results approvals referenced

The company stated that the Board of Directors retroactively approved standalone and consolidated financial results for Q3 FY2024-25 and Q4 and the full year for FY2024-25. The disclosure also referenced an update on insolvency proceedings and noted a regulatory fine related to delayed results, without detailing the amount.

These items were presented as part of the broader set of governance and compliance actions being taken by the board.

Parallel scrutiny: tribunal-ordered forensic audit for Gurugram projects

A separate forensic audit is also underway for specific projects in Gurugram, initiated by an Arbitral Tribunal. The company’s disclosure references Grant Thornton as the auditor for projects including Ansal Boulevard, Ansal Hub, and Ansal Height.

This tribunal-driven process is distinct from the board-initiated forensic audit covering corporate transactions from 2016 to 2026. Together, they indicate scrutiny at both a company-wide level and at the level of specific projects.

Regulatory context: UPRERA complaints and audit direction

The disclosure also refers to developments at the Lucknow bench of Uttar Pradesh RERA (UPRERA), stating that around 500 complaints have been filed against a single promoter, described as the Ansal’s. It further states that the bench ordered a forensic audit of the builder and imposed restrictions on activities, citing a view that homebuyers are genuine and raising the concern that money collected from homebuyers might have been diverted out from housing projects.

It also states that the Real Estate Regulatory Authority (RERA) of Uttar Pradesh ordered a legal review of the Ansal Group of Housing and set up a spectator to screen money-related activities following a surge in grievances.

Key facts at a glance

Market impact and why this matters

The immediate market relevance is governance-related: a forensic audit is typically ordered when a company believes standard internal reviews are insufficient to address identified concerns. In this case, the company has itself listed the suspected risk areas, including possible fund diversion, related-party issues, and the use of borrowed funds for non-sanctioned purposes.

For investors, the development increases focus on disclosures that may follow from the forensic auditor’s findings, and on any subsequent board actions. The presence of a separate tribunal-ordered forensic audit for specific projects, as well as the UPRERA-related developments and complaints referenced, adds to the level of oversight around the company’s financial reporting and project-level cash flows.

Conclusion

Ansal Properties’ appointment of AdvaRisk to review a decade of transactions marks a significant governance step after the board’s reconstitution in February 2026. With multiple auditor appointments, retroactive approvals of certain financial results, and parallel scrutiny from an arbitral tribunal and UPRERA-related actions, stakeholders are likely to track the outcome of these audit processes and any further regulatory updates.