ED: DHFL's Wadhawan tried to sell Rs 31cr paintings while in custody

Time of India

4 days ago

Representative image
MUMBAI: Erstwhile DHFL promoter Dheeraj Wadhawan, while in judicial custody and receiving treatment at a posh suburban hospital, had multiple meetings with a bookie, Deepak Kapoor, and a controversial businessman, Ajay Nawandar, who was also a patient admitted to the same medical facility.
They entered into an understanding to sell two high-end paintings - 'Falling Bull' by Tyeb Mehta and 'Painting' by Manjeet Bawa - worth a total Rs 31 crore, which were purchased through proceeds of crime diverted from DHFL, ED said in a recently submitted chargesheet in a Rs 34,000-crore money laundering case.
Dheeraj, who spent several months at the hospital, however, failed to sell the paintings as the CBI raided Nawandar's house and seized them.
The Wadhawans and others face allegations of financial misconduct, including fund diversion through associated parties, creation of false retail loan records, circular fund movements, and using diverted funds to acquire assets. DHFL group obtained bank loans and defaulted Rs 34,000 crore loan payments.
At the time, brothers Kapil and Dheeraj Wadhawans were arrested in a separate money laundering case connected to
Yes Bank
, and ED also froze their bank accounts.
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However, the cash-strapped Wadhawans managed to liquidate high-value assets, including jewellery and luxury watches, gathering Rs 5 crore in cash. The mortgaged jewellery included two diamond bangles at Rs 75 lakh each, two loose diamonds at Rs 30 lakh, two necklaces at Rs 1.5 crore and Rs 60 lakh, respectively, a diamond kada for Rs 20 lakh, and two luxury watches for Rs 90 lakh.
The watches were worth Rs 5 crore.
Beyond art, the Wadhawan family, including Kapil, Dheeraj, their mother Aruna, Kapil's wife Vanita, Dheeraj's wife Pooja, and Rebecca Dewan, allegedly spent nearly Rs 175.3 crore on jewellery, watches, and other valuables in 2019-20.
The ED chargesheet said, "Apart from spending the public money for their lavish lifestyle and hobbies, the Wadhawans converted a part of the said public funds in cash for their miscellaneous uses.
" ED stated that the Wadhawan family showed making Rs 26.9 crore payments to two Surat-based firms for purchasing polished diamonds, and the money came back to them in cash by deducting 1% commission.
In 2017-18, Kapil acquired 13 valuable paintings and one sculpture from an auction house for Rs 63 crore, channelling funds through their beneficial companies.
It is alleged that DHFL employees and the accused conspired to prepare inflated books of accounts, fabricating thousands of fake home loans to defraud a consortium of 29 banks, later reduced to 17. The funds disbursed through these alleged fraudulent loans were then diverted for various personal acquisitions, including paintings, sculptures, gemstones, a 20% stake in Varva Aviation, and properties.
It is alleged that auditors, legal consultants, licensors, bookies, and relatives of the Wadhawans are implicated in assisting with the siphoning off of the Rs 34,600 crore, causing immense losses to the consortium of banks.
Special Judge A C Daga recently took cognisance of the chargesheet, observing that there is a clear, prima-facie case which demonstrates the generation of proceeds of crime.
The chargesheet also named Ajay Vazirani, a former independent director in DHFL, as an accused. Vaziraniis alleged to have assisted in diverting thousands of crores from DHFL into RKW Group companies and in merging 30 "Bandra Book entities" that had illegally taken around Rs 5475.4 crore from DHFL. Vazirani received Rs 17.1 crore into his and his late father's bank accounts under the guise of selling a property to RKW Developers and is considered a "sham" transaction.