Mumbai, Aug. 27 -- National Housing Bank (NHB) has classified Star Housing Finance Ltd's (SHFL), formerly known as Akme Star Housing Finance Ltd, refinance account as "fraud" after snap and forensic audits flagged alleged phantom loan accounts, fund diversion and other irregularities at the housing finance company, according to a document reviewed by Mint.

The forensic audit by Ravi Rajan & Co LLP flagged ghost/phantom loan accounts, alleged siphoning of funds through phantom loan disbursements, use of loan funds for share-market manipulation and disbursement of unsecured loans to employees and others through the company's loan management system, according to the order.

SHFL acknowledged receipt of the order and said it was "working tow...