CBI books DHFL’s promoters Kapil, Dheeraj Wadhwan and others in connection to Rs 34,614 crore bank fraud case.
o Central Bureau of Investigation investigates 12 locations linked to DHFL, its promoters Kapil Wadhawan and Dheeraj Wadhwan, associate Sudhakar Shetty and others in connection to Rs 34,614 crore bank fraud.
o This is the biggest bank fraud investigated by the agency so far.
Conspiracy to cheat banks
The Central Bureau of Investigation raided 12 locations in Mumbai on Wednesday after booking Dewan Housing and Finance Limited (DHFL)’s Kapil and Dheeraj Wadhwan for allegedly cheating 17 Union Bank of India-led banks of ₹ 34,615 crores. This is the biggest ever bank fraud case that the agency has investigated.
The Wadhawans’ office and residence were initially raided after registering the First Information Report (FIR) against them on Monday. In the FIR filed, CBI said the promoters of DHFL allegedly conspired with others, including public servants, and induced the banks to sanction and disburse loans worth ₹42,871 crores between 2010 and 2018. Businessman Sudhakar Shetty and 10 other companies have also been named.
What the investigation has revealed thus far
The FIR said the Wadhawan brothers diverted funds to entities they controlled by sanctioning loans without due diligence and obtaining securities through falsification of accounts, causing a loss of ₹34,614.88 crores to the group of banks.
According to the Union Bank of India’s complaint to the CBI, a special review was carried out when DHFL started defaulting on payments to the lenders in May 2019. DHFL allegedly falsely assured them about the company’s financial condition, stating that it had enough liquidity to pay the loans back.
The special audit review and forensic audit report based on the investigation show significant financial irregularities, fabrication of books to show fraudulent non-existent retail loans, diversion of funds through related parties, round-tripping of funds, and utilization of diverted amounts for creation of assets by Kapil and Dheeraj Wadhawan and their associates. Most of the transactions were made towards entities in the nature of investments in land/properties.
CBI claims that they have traced 66 entities used for diverting the bank funds totalling ₹ 29,100 crores by the Wadhawans. Out of them, 40 were controlled by Kapil Wadhawan, they added.
Advocate Rohan Dakshini, representative of the Wadhawans, stated that the appellate tribunal has asked the lenders to reconsider their decision regarding the valuation of DHFL’s avoidance transactions. The fundamental fact, that the projects linked to these loans have value, has been ignored.
The FIR stated that State Bank of India (SBI) has been cheated of the highest amount, totalling ₹9898 crores, followed by Bank of India with ₹4,044 crores, Canara Bank with ₹4,022 crores, Union Bank of India with ₹3,813 crores, Punjab National Bank with ₹3,802 crores and the Bank of Baroda with ₹ 2,036 crores.
Other banks have been cheated between ₹71 crore to ₹1,499 crores including Bank of Maharashtra, Federal Bank, Central Bank of India, IDBI Bank, Indian Bank, Indian Overseas Bank, Karnataka Bank, Punjab and Sind Bank, South Indian Bank and UCO Bank.
The Wadhwans are also facing investigations in the Yes Bank fraud case involving Rana Kapoor and another related to the alleged creation of 2.60 lakh fake home loan accounts under the Pradhan Mantri Aawas Yojana, amounting to ₹14,046 crores. The DHFL promoters stand accused of illicit payment of ₹600 crores to Yes Bank founder Rana Kapoor in order to make the transactions
Officials have called this the biggest-ever bank fraud case for the CBI after the ABG Shipyard Limited fraud wherein ABG and chairman Rishi Kumar Aggarwal were booked for cheating ICICI Bank-led 28 banks of ₹22,842 crores.
Read More articles: https://tdznkwjt9mxt6p1p8657.cleaver.live/
