DHFL Defrauds UBI and 16 Other Banks For Rs 34,615 crore

DHFL & its promoters Kapil Wadhawan & Dheeraj Wadhawan, are involved in India’s biggest bank fraud of country, with the amount involved being almost triple of that of the Nirav Modi case.

After Nirav Modi,  Vijay Mallya & ABG Shipyard loan-fraud, now there is even bigger fraud. Dewan Housing Finance Corporation Limited (DHFL) defrauded on a loan of ?42,871 crore to Union Bank of India & 16 other banks! Until now, the Nirav Modi-led PNB loan fraud (?13,000 crore) and ABG Shipyard loan fraud (?20,000 crore) were considered to be the biggest. This the largest bank fraud in Indian history. The Central Bureau of Investigation has filed a complaint against DHFL promoters Kapil Wadhawan and his brother Dheeraj Wadhawan. Apart from Wadhwans, the CBI has booked Sudhakar Shetty of Suhana Group and 10 other real estate companies. The CBI conducted raids at 12 locations in Maharashtra that were linked to the bank. According to the CBI the complaint was filed by UBI as they gave the biggest loan out of all the 17 banks. According to the UBI complaint, since 2010, UBI & other banks gave a total of ?42,000 crore to DHFL. 

Out of that ?7,385 crore was returned and ?34,615 crore is outstanding. 

A forensic audit conducted by the KPMG in 2020-21 of DHFL loan accounts said that there were significant financial irregularities, fabrication of books and diverted amounts for creation of assets by Sh. Kapil Wadhawan, Sh. Dheeraj Rajesh Kumar Wadhawan and their associates. Wadhawans are facing multiple CBI and Enforcement Directorate cases since the collapse of the company in 2019 and have also been earlier arrested in the Yes Bank case. They have not been arrested yet and the investigation is going on. Stay tuned to ISH News for more updates.