ED freezes ₹51 crore in DHFL loan ‘fraud’ case
The Enforcement Directorate has frozen over 51 crore rupees linked to a major bank loan fraud case involving DHFL and its promoters. The investigation alleges that loan funds were siphoned off through falsified accounts and complex international property transactions.
Why it matters
This case represents a significant crackdown on financial corruption and money laundering within the Indian banking sector.
The Enforcement Directorate (ED) has frozen ₹51.75 crore lying in a bank account, following searches in connection with a bank loan fraud case allegedly involving Dewan Housing Finance Corporation Limited (DHFL) and its promoters.
The ED probe under the Prevention of Money Laundering Act (PMLA) is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) pursuant to a complaint lodged by the Union Bank of India on behalf of a consortium of 17 banks.
The FIR mentions that the accused persons, including Kapil Wadhawan and Dheeraj Wadhawan, entered into a criminal conspiracy to cheat the consortium banks, which had sanctioned credit facilities totalling ₹42,871.42 crore to DHFL.
“The loan funds were siphoned off and misappropriated through falsification of the books of accounts of DHFL, resulting in a wrongful loss of approximately ₹34,615 crore to the consortium lenders,” the ED said.
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