According to officials, Dewan Housing Finance Ltd., its former CMD Kapil Wadhawan, director Dheeraj Wadhawan, and others have been charged with bank fraud of Rs 34,615 crore by the CBI, making it the largest case of this kind that the agency has looked into.
After the case was filed on June 20, a team of more than 50 agency employees conducted coordinated searches on 12 locations in Mumbai on Wednesday that belonged to the FIR-listed defendants, which also included Sudhakar Shetty of Amaryllis Realtors and eight other builders.
The Union Bank of India (UBI), the organization’s leader and one of 17 lenders that together issued loan facilities totalling Rs. 42,871 crore between 2010 and 2018, filed a complaint that led to the action.
The bank claims that Kapil and Dheeraj Wadhawan defrauded the consortium of Rs 34,614 crore by failing to make loan payments starting in May 2019 through criminal conspiracy with others, misrepresenting and concealing facts, and abusing public funds.
The company allegedly committed financial irregularities, diverted cash, falsified accounts, and round-tripped monies to “create assets for Kapil and Dheeraj Wadhawan” using public funds, according to the audit of DHFL account books.
Due to prior fraud allegations against them, both are currently in judicial custody. According to them, the lender banks declared the DHFL loan accounts non-performing assets at various times.
In a meeting on February 1, 2019, the lending banks appointed KPMG to perform a “special review audit” of DHFL from April 1, 2015 to December 31, 2018. This was done after media reports on claims of fund syphoning led to an investigation into DHFL in January 2019, which led to the probe.
Rana Kapoor, the creator of Yes Bank, is the subject of charges of misconduct, and the CBI is already looking into the Wadhawans in connection with these claims.
