The article discusses The DHFL scam, one of India’s largest corporate frauds (~₹34,000 crore), involved massive fund diversion through shell companies and fictitious borrowers, as exposed by a Cobrapost sting and later confirmed by KPMG’s forensic audit. Despite clear red flags, credit-rating agencies maintained high ratings, auditors overlooked accounting irregularities, and regulators like SEBI and RBI failed to act swiftly. DHFL defaulted in 2019, became the first NBFC under IBC insolvency proceedings, and was later acquired by Piramal Capital. The scam highlighted systemic failures in governance, auditing, and regulatory oversight, prompting tighter NBFC regulations, strengthened auditing standards, and enhanced corporate governance norms.