Rs.34,000 crore fraud in Union Bank of India: The Central Bureau Of Investigation (CBI) has registered a fresh case against Kapil Wadhawan and Dheeraj Wadhawan of DHFL for allegedly cheating a consortium of 17 banks led by the Union Bank of India to the tune of Rs.34,615 crore, making it the biggest banking fraud probed by the agency. Click here to join whatsapp/telegram study group →
The CBI is carrying out searches at 12 locations in Mumbai at the premises of accused in the case, they said. 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.
In the biggest-ever loan fraud case in India, the CBI has booked former promoters of Dewan Housing Finance Corporation Ltd (DHFL), Kapil Wadhawan and Dheeraj Wadhawan, among 13 accused for defrauding a consortium of 17 banks of over Rs.34,000 crore. Until now, the Nirav Modi-led PNB loan fraud (Rs.13,000 crore) and ABG Shipyard loan fraud (Rs.20,000 crore) were considered to be the biggest.
The CBI case has been registered on a complaint from Union Bank of India (UBI), which is the lead bank in the consortium. According to the UBI complaint, since 2010, the DHFL has extended credit facilities of over Rs.42,000 crore by the consortium of which Rs.34,615 crore remain outstanding. The loan was declared NPA in 2019 and fraud in 2020.
A forensic audit conducted by the KPMG in 2020-21 of DHFL loan accounts observed that large amounts were disbursed as loans & advances by the borrower company to a number of inter-connected entities and individuals with commonalities to DHFL Promoter Entities, which were used for purchase of shares/debentures.
According to the KPMG report, most of the transactions of such entities/individuals were in the nature of investments in land/properties.
DHFL is a non-deposit taking housing finance company, headquartered in Mumbai with branches in major cities across India. DHFL was established to enable access to economical housing finance to the lower and middle income groups in semi-urban and rural parts of India.
- Headquarters: Mumbai
- Founded: 11 April 1984
Last year DHFL was acquired by Piramal Group. Piramal Capital and Housing Finance Ltd (PCHFL) was merged with Dewan Housing Finance Corporation Ltd (DHFL) with effect from September 30, 2021.
Piramal Group is a global business conglomerate with diverse interests in Pharma, Financial Services and Real Estate. The Group has offices in over 30 countries and a global brand presence in more than 100 markets.
- Owner: Ajay Piramal
- Headquarters: Mumbai
- Founded: 1984