Latest news with #KapilWadhawan
Time of India
15 hours ago
- Business
- Time of India
DHFL case: Expeditiously decide Kapil Wadhawan bail plea, SC tells Delhi HC
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Supreme Court on Friday asked the Delhi High Court to decide within two weeks the bail plea of Dewan Housing Finance Ltd 's former promoter Kapil Wadhawan in the multi-crore bank fraud case investigated by the CBI.A bench of Justices Ujjal Bhuyan and Manmohan said Wadhawan was in custody since July, 2022 and his bail plea was coming up for hearing on July 18 in the high bench asked the high court to decide the bail plea within two weeks from the date of moved the top court aggrieved by the orders of adjournment in his bail plea by the high court and sought an expeditious disposal of his advocate Siddharth Luthra, appearing for Kapil Wadhawan, referred to his client's long custody period aside from the non-adjudication on his bail plea on multiple Wadhawan brothers -- Kapil and Dheeraj -- were arrested in this case on July 19, was granted interim bail by the high court on September 9, last year on medical chargesheet was filed by the CBI on October 15, 2022 and cognisance was taken by the trial FIR in the case was based on a complaint made by the Union Bank of India The CBI alleged that Dewan Housing Finance Ltd (DHFL), its then CMD Kapil, then director Dheeraj and other accused persons conspired to cheat the consortium of 17 banks led by the Union Bank of accused and others induced the consortium to sanction huge loans aggregating Rs 42,871.42 of the amount was allegedly siphoned off and misappropriated by alleged falsification of the books of the DHFL and dishonest default in repayment of the legitimate dues of the consortium banks, the CBI complainant alleged that a wrongful loss of Rs 34,615 crore was caused to the consortium banks in as much as such was the quantification of the outstanding dues as on July 31, 2020. PTI
Hindustan Times
30-05-2025
- 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.
