CBI files case against DHFL, promoters in a Rs 34,615 cr bank fraud
The Central Bureau of Investigation has registered a case against DHFL and its promoters Kapil Wadhawan and Dheeraj Wadhawan for committing a bank fraud of Rs 34,615 crore.
The case has been filed on a complaint filed by Union Bank of India, Industrial Finance Branch, Mumbai.
According to the FIR registered by the CBI, DHFL, its promoters and directors allegedly cheated a consortium of 17 banks led by Union Bank of India to the tune of over Rs. 34,615 crore by siphoning off loans availed from the said banks & falsifying the books of said the company and creating Shell Companies/false entities, which had come to be known as “Bandra Book Entities”.
It has been alleged that the said DHFL and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities.
These fictitious entities include — Amaryllis Realtors, Mumbai; Gulmarg Realtors, Mumbai; Skylark Buildcon Pvt Ltd, Mumbai; Darshan Developers Pvt. Ltd., Mumbai; Sigtia Construction Pvt. Ltd, Mumbai; Creatoz Builders Pvt. Ltd., Mumbai; Township Developers Pvt. Ltd., Mumbai; Shishir Reality Pvt. Ltd., Mumbai; and Sunblink Real Eastate Pvt. Ltd
It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage & conceal dubious transactions. The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company.
Searches were conducted on 22 June 2022 at 12 locations in Mumbai at the premises of accused which led to recovery of incriminating documents. Further investigation continues.
DHFL was the first financial services default case to be resolved under the Insolvency and Bankruptcy Code (IBC). Piramal Group acquired DHFL by paying Rs 35,500 crore for its whole loan portfolio. The committee of creditors has approved Piramal’s resolution plan by 94% vote share.
Also Read: NCLAT asks CoC to reconsider avoidance transaction terms of DHFL resolution plan
