Central Bureau of Investigation (CBI) in India has filed a bank fraud case against DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan for defrauding a consortium of 17 banks led by Union Bank of India for Rs 34,615 crore. Considering a biggest bank fraud case registered by the agency.
The agency booked the Dewan Housing Finance Corporation Ltd (DHFL), Kapil Wadhawan, the then CMD, Dheeraj Wadhawan, the director and six realtor companies for allegedly being part of criminal conspiracy to cheating the consortium led by the Union Bank of India to the tune of Rs 34,615 crore.
The agency has taken action on a complaint from the bank on February 11, 2022.
What’s The Fraud?
A 17-member lender consortium had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. After media reports, DHFL hit by an investigation in January 2019 on allegations of thefts of funds exposed.
The lenders on February 1, 2019, appointed KPMG to conduct a “special review audit” of DHFL. For the period from April 1, 2015, to December 31, 2018. Union Bank of India (UBI) alleged that KPMG, highlighted distribution of funds in the heads of loans and advances. Disbursed to related parties and related entities and individuals of DHFL and its directors.
Then examination of books of accounts cleared that 66 entities commonalities with DHFL promoters disbursed Rs 29,100 crore, against which Rs 29,849 crore remained payable.
Wadhawans And Their Involvement In The Fraud
Kapil Wadhawan is the former CMD of Dewan Housing Finance Corporation Ltd (DHFL). However, Dheeraj Wadhawan is the former director. Both were the promoters of DHFL.
The promoters of DHFL, Kapil and Dheeraj Wadhawan, are now in jail in connection with the cases registered by Central Bureau of Investigation (CBI).