CBI probes India's biggest bank fraud case; books DHFL officials
By Team Newsable | First Published Jun 22, 2022, 3:45 PM ISTA team of over 50 CBI officials carried out coordinated searches at premises belonging to those accused in the FIR which also includes Sudhakar Shetty of Amaryllis Realtors and eight other builders.
The Central Bureau of Investigation carried out coordinated searches T 12 locations to Dewan Housing Finance Ltd in Mumbai after the central agency booked the company's former chairman and managing director Kapil Wadhawan, director Dheeraj Wadhawan and others in a fresh case involving Rs 34,615 crore.
The FIR makes this the biggest bank fraud probed by the agency.
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A team of over 50 CBI officials carried out coordinated searches at premises belonging to those accused in the FIR which also includes Sudhakar Shetty of Amaryllis Realtors and eight other builders.
The consortium of banks has alleged that DHFL had availed credit to the tune of Rs 42,871 crore between 2010 and 2018 under various arrangements. However, DHFL allegedly began defaulting on repayment commitments from May 2019 onwards.
Lender banks declared DHFL's accounts as non-performing assets at different points in time. The lenders met on February 1, 2019, after DHFL was under investigation in January 2019 over allegations of fraud by round-tripping, siphoning and diversion of funds.
The banks appointed KPMG to carry out a special review audit of DHFL from April 1, 2015, to December 31, 2018. On October 18, 2019, the banks approached agencies to issue a Lookout Circular against Kapil and Dheeraj Wadhawan to prevent them from leaving the country.
The bank alleged that KPMG's audit report red-flagged diversion of funds in the garb of loans and advances to related and interconnected entities and individuals.
The report found that Rs 29,100.33 crore were disbursed by 66 entities having commonalities with DHFL promoters against which Rs 29,849 crore remained outstanding. The banks claimed that most transactions of such entities and individuals were in the form of investments in land and properties.
The audit also allegedly pointed toward significant financial irregularities, fabrication of books, diversion of funds and round-tripping of funds to create assets for Kapil and Dheeraj Wadhawan.
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