CBI registers ‘biggest’ banking fraud of Rs 34,615 crore on DHFL; 17 Bank Hits
Highlight
- 50 CBI officers conducted coordinated searches at 12 premises in Mumbai on Wednesday
- This action has been taken on the complaint of Union Bank of India (UBI).
- DHFL loan accounts were declared non-performing assets by the lender at different times
The CBI has registered a case against Dewan Housing Finance Ltd, its former CMD Kapil Wadhawan, director Dheeraj Wadhawan and others for bank fraud of Rs 34,615 crore, making it the biggest case probed by the agency, officials said on Wednesday. After the case was registered on June 20, a team of over 50 agency officials on Wednesday conducted coordinated searches at 12 premises in Mumbai belonging to the FIR-listed accused, including Sudhakar Shetty of Amarelis Realtors, and eight other builders.
The action came on a complaint by Union Bank of India (UBI), leader of the 17-member lender’s consortium, which had extended loan facilities worth Rs 42,871 crore between 2010 and 2018. The bank has alleged that Kapil and Dheeraj Wadhawan along with others, criminal conspiracy, misrepresented and suppressed facts, criminal breach of trust and misappropriated public funds to defraud the union by defaulting in loan repayment since May 2019. . Audit of DHFL ledgers revealed that the company allegedly committed financial irregularities, diverted funds, fabricated books, siphoned off funds to “build assets for Kapil and Dheeraj Wadhawan” by using public money . Both are in judicial custody in connection with the previous fraud cases against them.
He said DHFL loan accounts were declared non-performing assets by the lending banks at different times. When DHFL came under scrutiny in January 2019, after allegations of misappropriation of funds had surfaced in the media, the lender banks held a meeting on February 1, 2019 and asked KPMG to conduct a “Special Review Audit” of DHFL with effect from April 1, 2015. “Assigned to do. December 31, 2018. Banks also issued a look out circular on October 18, 2019, against Kapil and Dheeraj Wadhawan for preventing them from leaving the country. UBI has alleged that KPMG, in its audit, red-flagged diversion of funds in the guise of loans and advances of DHFL and its directors to related and interconnected entities and individuals.
Scrutiny of books revealed that Rs 29,100 crore was disbursed to 66 entities having parity with DHFL promoters, of which Rs 29,849 crore was outstanding. “Most of the transactions of such entities and individuals were in the nature of investment in land and properties,” the bank alleged. It is learned that DHFL disbursed funds, in many cases, within a month, diverted funds for investment in Shetty’s entities, loans rolled over without NPA classification, repayment of hundreds of crores was unrecoverable in bank statements and principal But there was an unreasonable moratorium. and interest was paid.
Another major outstanding in DHFL accounts was Rs 11,909 crore generated from loans and advances of Rs 24,595 crore given to 65 entities between April 1, 2015 and December 31, 2018. DHFL and its promoters also disbursed Rs 14,000 crore as project finance but reflected. Similar to retail loans in their books. “This led to the creation of an enlarged retail loan portfolio of 1,81,664 false and non-existent retail loans, with a total outstanding of Rs 14,095 crore.” The loans, referred to as “Bandra Books” were kept in a separate database and later merged with other large project loans. (OLPL).
“It was learned that the OLPL category was largely carved out of the aforesaid non-existent retail loans of Rs 14,000 crore, of which Rs 11,000 crore was transferred to OLPL loans and Rs 3,018 crore as a part of the retail portfolio. was maintained as unsecured as unsecured retail loans,” it alleged. He said that DHFL, its directors and officers said that they would like to securitize the pool of housing loans, project loans, disinvestment of promoters’ stake in the company. Were trying to put pressure on the company through various means.The bank alleged that Kapil Wadhawan continued to say that DHFL had six months of cash liquidity and would remain cash surplus even after considering all repayment obligations. Said that after lenders made “false assurances”, DHFL in May 2019 delayed the interest payment obligations for the terms of the loan, which continued thereafter and the account was declared a non-performing asset.
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