Latest news with #DHFL
Economic Times
2 days ago
- Business
- Economic Times
Time to take a logical risk: 6 housing finance stocks with upside potential of up to 43%
Despite all the ills of the real estate and housing finance business, one of the biggest wealth creators in the history of the Indian stock market has been a housing finance company – the erstwhile HDFC, which has now merged with HDFC Bank. If you had bought HDFC 20 years back, you would have generated a huge amount of wealth. At the same time, if you had invested in DHFL… well, we all know what would have happened to that money. As a sector, FONT SIZE SAVE PRINT COMMENT
Time of India
6 days ago
- Business
- Time of India
ED says DHFL promoters used public money for extravagant hobbies, lavish purchases
MUMBAI: DHFL promoters Kapil and Dheeraj Wadhawan allegedly utilised "public money" for their "extravagant hobbies", purchasing 25 paintings and a sculpture worth over Rs 63 crore, claimed the Enforcement Directorate 's chargesheet in multi-crore bank loan scam case. Besides the paintings, the loan amount was used for the purchase of gemstones, properties as well as 20 per cent stake in a helicopter, the chargesheet said. The Wadhawan brothers are accused of defrauding a consortium of 17 banks led by Union Bank of India (UBI) to the tune of Rs 34,615 crore. The federal probe agency recently filed its chargesheet against 17 accused, including the Wadhawans and entities owned/controlled by them, before a special Prevention of Money Laundering Act (PMLA) court. The court took cognizance of the chargesheet earlier this month, ruling there is a clear, prima-facie case which demonstrates generation of proceeds of crime, its further placement, layering and integration, leading to an offence under provisions of PMLA. "All the accused persons appear to have been involved in this process of money laundering and ultimately tried to make tainted money untainted," it said. Finding sufficient grounds for further proceedings, the court has issued summons to all the accused, who have been directed to appear before the special judge on June 13. The ED's case stems from a Central Bureau of Investigation (CBI) FIR registered in 2022 based on a complaint made by Union Bank of India. Then CMD Kapil Wadhawan , then director Dheeraj Wadhwan and other accused persons allegedly entered into a criminal conspiracy to cheat a consortium of 17 banks led by UBI to avail loans aggregating to Rs 42,871.42 crore during July 2010 and December 2018 for DHFL for its business activities, the chargesheet said. The probe agency claimed the money was "dishonestly and fraudulently misappropriated and diverted" by Wadhawans in connivance with their associates to their group entities and other related parties. Giving an account of the money trail, the ED said the Wadhawans diverted Rs 11549 crore from DHFL to their beneficially entities without following any loan procedure. It also claimed the DHFL promoters utilized the public funds for fulfilling their extravagant hobbies. "They purchased 25 paintings and one sculpture from the year 2013 onwards and made payment of Rs. 63,44,55,638 for these paintings. Out of this total payment, an amount of Rs. 40,07,26,250 was diverted from the accounts of DHFL," the chargesheet said. The ED further said the Wadhwans paid Rs 11.83 crore and 14.82 crore to Surat-based firms Kushal Exports and Yogi Diam, Surat between 2009-15 in the name of purchase of cut and polished diamonds. However, these entities gave back an equivalent amount to Wadhawans in cash after deducting their commission of 1 per cent. Out of the total payments made by these firms, an amount of Rs 16.94 crore was diverted from the account of DHFL. Further the Wadhawans purchased expensive jewellery worth around Rs 42.10 crore from one Diamantina Fine Jewels LLP & Capart Crush, Bandra, from 2011-12 to 2018-19, the ED claimed. It added that out of the total payment made to Diamantina Fine Jewels, Rs 26.82 crore was diverted from DHFL. The Wadhawans through RKW Developers Pvt Ltd, acquired 20 per cent stake in Varva Aviation, Pune, which owned an Agusta Grand helicopter, by paying Rs 9 crore, the ED chargesheet said, adding Rs 7 crore was diverted from their firm. The ED chargesheet also accused them of converting a part of the said public funds to cash for their miscellaneous uses. The chargesheet claimed the other accused persons who acted as auditor, branch auditor, legal consultant, licensor, bookie as well as kin of the Wadhawans helped them in siphoning off the said diverted amount, causing loss of Rs 34,614.88 crore to the consortium banks. The amount itself is proceeds of crime generated by the accused persons by falsifying accounts, diverting funds and using it for purposes other than what it was sanctioned for, the ED chargesheet said.
News18
6 days ago
- Business
- News18
Rs 175.3 Crore On Jewellery, Rs 63 Crore On Paintings: How DHFL's Wadhawans Spent Public Money
Last Updated: ED chargesheet on Rs 34,615-crore DHFL scam: Wadhawans bought diamonds, stake in aviation; under treatment in judicial custody, Dheeraj tried to sell 2 paintings worth Rs 31 crore DHFL promoters Kapil and Dheeraj Wadhawan allegedly used 'public money" for their 'extravagant hobbies", the Enforcement Directorate (ED) stated in its chargesheet into the multi-crore bank loan scam case filed recently. The Wadhawan brothers are accused of defrauding a consortium of 17 banks led by Union Bank of India (UBI) to the tune of Rs 34,615 crore. The ED said the Wadhawans diverted Rs 11,549 crore from DHFL to their beneficiary entities without following any loan procedure. The chargesheet claimed the other accused persons who acted as auditor, branch auditor, legal consultant, licensor, bookie as well as kin of the Wadhawans helped them in siphoning off the said diverted amount, causing loss of Rs 34,614.88 crore to the consortium banks. STAKE IN AVIATION FIRM, DIAMONDS: THE EXTRAVAGANT PURCHASES 'They purchased 25 paintings and one sculpture from the year 2013 onwards and made payment of Rs. 63,44,55,638 for these paintings. Out of this total payment, an amount of Rs. 40,07,26,250 was diverted from the accounts of DHFL," the charge sheet said. 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 Times Of India reported. The Wadhawans purchased expensive jewellery worth around Rs 42.10 crore from one Diamantina Fine Jewels LLP & Capart Crush, Bandra, from 2011-12 to 2018-19, the ED claimed. It added that out of the total payment made to Diamantina Fine Jewels, Rs 26.82 crore was diverted from DHFL. The ED further said the Wadhwans paid Rs 11.83 crore and 14.82 crore to Surat-based firms Kushal Exports and Yogi Diam, Surat between 2009-15 in the name of purchase of cut and polished diamonds. However, these entities gave back an equivalent amount to Wadhawans in cash after deducting their commission of 1 per cent. Out of the total payments made by these firms, an amount of Rs 16.94 crore was diverted from the account of DHFL. The Wadhawans through RKW Developers Pvt Ltd, acquired 20 per cent stake in Varva Aviation, Pune, which owned an Agusta Grand helicopter, by paying Rs 9 crore, the ED chargesheet said, adding Rs 7 crore was diverted from their firm. ATTEMPTED TO SELL TYEB MEHTA, MANJEET BAWA PAINTINGS The ED chargesheet also accused them of converting a part of the said public funds to cash for their miscellaneous uses. Receiving treatment under judicial custody, Dheeraj Wadhawan tried to sell two paintings worth Rs 31 crore — 'Falling Bull' by Tyeb Mehta and another by Manjeet Bawa — but the bid was foiled, said the ED, according to the TOI. CBI FILED FIR IN 2022 The ED's case stems from a Central Bureau of Investigation (CBI) FIR registered in 2022 based on a complaint made by Union Bank of India. Then CMD Kapil Wadhawan, then director Dheeraj Wadhwan and other accused persons allegedly entered into a criminal conspiracy to cheat a consortium of 17 banks led by UBI to avail loans aggregating to Rs 42,871.42 crore during July 2010 and December 2018 for DHFL for its business activities, the chargesheet said. The probe agency claimed the money was 'dishonestly and fraudulently misappropriated and diverted" by Wadhawans in connivance with their associates to their group entities and other related parties. CHARGESHEET AGAINST 17 ACCUSED The federal probe agency recently filed its chargesheet against 17 accused, including the Wadhawans and entities owned/controlled by them, before a special Prevention of Money Laundering Act (PMLA) court. The court took cognizance of the chargesheet earlier this month, ruling there is a clear, prima-facie case which demonstrates generation of proceeds of crime, its further placement, layering and integration, leading to an offence under provisions of PMLA. 'All the accused persons appear to have been involved in this process of money laundering and ultimately tried to make tainted money untainted," it said. Finding sufficient grounds for further proceedings, the court has issued summons to all the accused, who have been directed to appear before the special judge on June 13. With PTI Inputs First Published:
Time of India
6 days ago
- Business
- Time of India
‘Arrested & in hosp, DHFL loan fraud accused tried to sell 31cr paintings, foiled'
Mumbai: Dheeraj Wadhawan, the former DHFL promoter arrested in 2020 in a Rs 34,000-crore money laundering case, held multiple meetings with bookie Deepak Kapoor and controversial businessman Ajay Nawandar, while receiving treatment in a posh hospital under judicial custody, in a bid to sell two paintings worth Rs 31 crore — 'Falling Bull' by Tyeb Mehta and another by Manjeet Bawa — that were bought with money diverted from DHFL, said ED in its chargesheet. But Wadhawan, who spent months at the hospital where Nawandar was also admitted in 2021-22, was foiled as CBI raided Nawandar's house and seized the paintings. Dheeraj, brother Kapil and others face charges of funds diversion, creation of false loan records, and using diverted funds to acquire assets. Erstwhile DHFL promoters Kapil and Dheeraj Wadhawan 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, the Enforcement Directorate (ED) said in a recently submitted chargesheet in a Rs 34,000-crore money laundering case. The DHFL group obtained bank loans and defaulted Rs 34,000 crore loan payments. After brothers Kapil and Dheeraj were arrested in a money laundering case connected to Yes Bank, ED froze their bank accounts. 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. 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, 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. During 2017-18, Kapil Wadhawan 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, branch 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 banks. Special judge AC 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 investigation specifically detailed lavish expenditures by the Wadhawans. The ED chargesheet also named Ajay Vazirani, a lawyer and former independent director in DHFL, as an accused in the money laundering case. Vazirani, who was also a director in several Wadhawan-owned companies, is 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 Rs 5475.44 crore from DHFL. Vazirani allegedly received approximately Rs 17.1 crore into his and his late father's bank accounts under the guise of selling a property to RKW Developers , is considered a "sham" transaction.
Hindustan Times
6 days ago
- Business
- Hindustan Times
DHFL masked hundreds of crores diverted to shell firms: ED charge sheet
MUMBAI: Dewan Housing Finance Corporation Limited (DHFL) had developed a software that automatically split hundreds of crores diverted to its real estate arm through 87 shell firms into thousands of retail loans to mask the diverted amounts from banking regulators, according to the Enforcement Directorate's (ED's) charge sheet into the ₹34,614-crore bank loan fraud case linked to the company. The investigation has revealed that DHFL promoters Kapil and Dheeraj Wadhawan diverted around ₹11,548 crore from DHFL to 87 fictitious entities—known as Bandra Book firms—for business purposes and personal use. The brothers used the diverted funds to purchase 25 paintings and a sculpture worth over ₹63 crore, expensive jewellery, and a 20% stake in Pune-based Varva Aviation, among other items, the charge sheet said. The loans were sanctioned in the name of RKW Group, a company named after the initials of Kapil and Dheeraj Wadhawan's father, Rajesh Kumar Wadhawan, according to the charge sheet, a copy of which was seen by HT. While Dheeraj Wadhawan raised the fund requests, his brother Kapil approved the loans through emails without following any due procedure. A record of these transactions was maintained on an isolated computer that wasn't connected to the company's LAN network, the charge sheet said. The charge sheet named 17 people and entities, including Kapil Wadhawan, Dheeraj Wadhawan, and the RKW Group. According to the probe, Kapil Wadhawan managed DHFL's housing finance business, while Dheeraj looked after the real estate development business across Mumbai and Pune under the RKW Group. According to the charge sheet, when the Wadhawans needed funds for their real estate projects and several other personal expenses, they would send one-page letters or cryptic emails to a particular officer at DHFL. Kapil Wadhawan then approved the 'loan proposals' without following due procedure by simply replying, 'Okay, Approved.' The approved proposals were then forwarded to the concerned bank branch for money disbursal. The shell companies or Bandra Book firms were directly under the control of Kapil Wadhawan, according to the statement of Harshil Mehta, the former chief executive officer of DHFL. All the accounts of the Bandra Book firms were maintained on a single computer that was isolated and not connected with the housing finance company's LAN network, Mehta told the ED. The computer was allegedly handled by very few close associates of Kapil Wadhawan. The loans were then allegedly sanctioned as retail or home loans by bypassing all retail credit policy norms and without consulting the company's retail, property, legal or sales teams. Despite officially closing in 2004, the Bandra branch of DHFL was kept alive only because of the Wadhawan brothers' surreptitious instructions, the charge sheet said. As soon as the funds were illegally diverted to the group firms, they were then split into smaller amounts and recorded as retail or home loans for 260,000 fictitious loan accounts in the company's database management software, the charge sheet said. The software, called FOXPRO, would then automatically generate fake data of multiple small home loans—mostly using details of DHFL's earlier customers—in order to inflate the company's retail loan books for further funding. The ED's money-laundering probe against the company is based on a case registered by the Central Bureau of Investigation (CBI) on February 11, 2022. The CBI began its investigation after a consortium of 17 banks led by the Union Bank of India alleged that the DHFL promoters conspired with their associates and got the banks to sanction loans amounting to ₹42,871 crore between January 2010 and December 2019. The subsequent loan defaults allegedly resulted in losses of ₹34,615 crore to the consortium.
