The Dewan Housing Finance Corporation Ltd. (DHFL) loan fraud has emerged as one of India’s largest financial scams. The case involves former promoters Kapil and Dheeraj Wadhawan, who are accused of diverting funds worth ₹34,615 crore through fake housing loans, fictitious borrowers, and shell companies, known as the “Bandra books.”
Recent developments have brought renewed attention to asset attachments, regulatory actions, and legal proceedings in the case.
Enforcement Directorate’s Asset Attachments
The ED has attached assets worth ₹185.84 crore under the Prevention of Money Laundering Act (PMLA).
These include 154 flats in Kurla and receivables from 20 flats, bringing total seized assets to ₹256.23 crore.
The attachments aim to recover diverted funds and prevent further misuse of assets by the Wadhawan brothers.
Alleged Diversion of Funds
Investigations reveal that the Wadhawan brothers diverted approximately ₹11,500 crore through 87 shell companies.
Funds were allegedly used for luxuries, international assets, and high-value purchases, rather than genuine business purposes.
Regulatory Actions
SEBI (Securities and Exchange Board of India):
Banned Kapil and Dheeraj Wadhawan, along with four others, from the securities market for five years.
Imposed a ₹120 crore fine for fund diversion and falsification of records.
Supreme Court:
Revoked Dheeraj Wadhawan’s medical bail, directing him to surrender within two weeks.
Legal Proceedings
CBI Investigation:
Probing the alleged defrauding of a 17-member bank consortium led by Union Bank of India.
Total fraud amount is reported at ₹34,615 crore.
Delhi High Court:
Denied bail to Kapil Wadhawan, citing serious economic offense and risk of evidence tampering.
Supreme Court Orders:
Ordered immediate arrest of both Kapil and Dheeraj Wadhawan, setting aside previous statutory bail.
Additional Developments
Public Accounts Committee (PAC) has raised concerns about coal miners’ provident fund money invested in DHFL debentures, despite red flags regarding the company’s financial health.
The case continues to highlight risks in corporate governance, banking oversight, and regulatory compliance in India.
FAQ
Q1: Who are Kapil and Dheeraj Wadhawan?
They are former promoters of DHFL, accused of diverting funds worth thousands of crores through fraudulent loans and shell companies.
Q2: How much money was involved in the DHFL fraud?
The total alleged amount diverted is ₹34,615 crore, including fake housing loans of around ₹14,000 crore.
Q3: What assets have been attached by the ED?
The ED has attached 154 flats and receivables from 20 flats, worth ₹185.84 crore, bringing total attached assets to ₹256.23 crore.
Q4: What actions have regulators taken?
SEBI banned the Wadhawan brothers and four others from the securities market for five years and fined them ₹120 crore.
Q5: What is the status of the legal proceedings?
The Supreme Court revoked Dheeraj Wadhawan’s medical bail, Delhi HC denied Kapil Wadhawan’s bail, and both are ordered to surrender.
Conclusion
The DHFL loan fraud case continues to unfold with major asset attachments and regulatory actions. The developments underline the importance of strong corporate governance, regulatory oversight, and legal enforcement to prevent large-scale financial scams in India. Investors, financial institutions, and regulators are closely monitoring the case for further developments.
Published on : 10th September
Published by : SMITA
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