In Biggest Bank Fraud Probed By CBI, Raids On DHFL Ex-Promoters

This is the biggest banking fraud that is being probed by the central agency. Till now, it has carried out 15 raids in Mumbai in connection with the case.

By Aalok Sensharma
Updated: Wed, 22 Jun 2022 10:41 PM IST
Minute Read
In Biggest Bank Fraud Probed By CBI, Raids On DHFL Ex-Promoters

The Central Bureau of Investigation (CBI) on Wednesday registered a case against Kapil Wadhawan and Dheeraj Wadhawan, the former promoters of the Dewan Housing Finance Corporation Ltd (DHFL), for allegedly defrauding a consortium of 17 banks led by the Union Bank of India to the tune of Rs 34,615 crore.

This is the biggest banking fraud that is being probed by the central agency. Till now, it has carried out 15 raids in Mumbai in connection with the case.

In its first information report (FIR), the CBI said that as per the forensic report submitted by KPMG, the emails obtained by them show that the aforesaid loans and ICDs were disbursed in favour of the promoter controlled/ related/ connected entities by DHFL under instructions of Kapil and Dheeraj Wadhawan.

A part of the money was diverted to companies controlled by the erstwhile promoters, Kapil Wadhawan and Dheeraj Wadhawan and Sahana Group, where they also have prima facie financial interest.

It further reads that Kapil Wadhawan, Dheeraj Wadhawan, the promoters of DHFL, in conspiracy with others, including public servants, induced the DHFL Consortium Banks to sanction and disburse the loans/ advances/ subscription in NCDs aggregating to Rs 42,871.42 crore, dishonestly and fraudulently misappropriated such public funds raised by the said DHFL and diverted the same to the DHFL Group entities/ Sahana Group Entities/ other parties named above through sanction of fraudulent loans to such entities without due diligence, without obtaining adequate securities, through falsification of books of accounts and deliberately and wilfully defaulted on the loans/ advances availed from the DHFL Consortium Banks, thereby causing a wrongful loss of Rs 34,814.88 crore to the DHFL Consortium Banks.

The role of auditors of DHFL and DHFL Promoter Groups companies/ Sahana Group companies may be looked into during the course of investigation to ascertain as to how large value loans, given as other large project loans (OLPL) but reflected as small retain loans in Bandra Books entities etc were not reported by the Statutory Auditors/ Internal Auditors of DHFL during their audits, it reads.

(With inputs from ANI)

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