The Central Bureau of Investigation (CBI) has booked Dewan Housing Finance Ltd., the company's former CMD Kapil Wadhawan, its director Dheeraj Wadhawan, and several others in a bank fraud case of Rs 34,615 crores.
The CBI conducted searches in 12 locations on the charges of fraud against a consortium of 17 banks in the biggest bank fraud case in the country. The largest fraud prior to this was the ABG Shipyard fraud which came to light in early February 2022, worth Rs 22,842 crores.
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The action comes after a complaint from Union Bank of India, the leader of the consortium of banks. The consortium had given credit facilities to the tune of Rs 42,871 crores between 2010 & 2018. The bank has accused both Wadhawans of criminal conspiracy to defraud the banks by fabricating their books, diverting funds, and using public money to create assets for themselves.
After early warning signs, the bank flagged DHFL as a Red Flagged Account in October 2019 and the company was approved for resolution under IBC in June 2021. Since then, the lenders have been able to recover ₹5,977.93 crore and fresh non-convertible debentures of ₹7,186.74 crores.
"In pursuance of the criminal conspiracy, accused Kapil Wadhawan and others induced the consortium banks to sanction huge loans aggregating to Rs 42,871 crore and siphoned off & misappropriated a significant portion of the funds by falsifying the books of the DHFL and dishonestly defaulted on repayment of the legitimate dues of the consortium banks and thereby causing wrongful loss of Rs 34,615 crore to the consortium lenders,” reads the CBI FIR.
The shares of DHFL once traded on our bourses but were delisted in June 2021 as part of the resolution plan. Around the time, the share traded at around Rs 23.05 per share.
Article by Aman Agarwal.
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