- 50 CBI officers on Wednesday conducted coordinated searches of 12 premises in Mumbai.
- The action was initiated following a complaint from the Union Bank of India (UBI).
- DHFL loan accounts have been declared non-performing assets by the lender at various points in time.
CBI has sued Dewan Housing Finance Ltd, its former CMD Kapil Wadhawan, director Dhiraj Wadhawan and others for Rs 34,615 crore bank fraud, making it the biggest case ever investigated by the agency, officials said on Wednesday. After filing the case on June 20, a team of more than 50 agency employees on Wednesday conducted coordinated searches of 12 Mumbai properties belonging to FIR-listed defendants, including Sudhakar Shetty of Amaryllis Realtors and eight other builders.
The lawsuit was brought against a complaint by Union Bank of India (UBI), the leader of a 17-member consortium of lenders that provided Rs 42,871 crore of credit lines between 2010 and 2018. The bank alleged that Kapil and Deeraj Wadhawan were in criminal conspiracy with others, misrepresentation and concealment of facts, committing criminal breach of trust and misuse of public funds to defraud the consortium of Rs 34,614 crores as a result of the loan default since May 2019. An audit of DHFL’s ledgers revealed that the company allegedly committed financial irregularities, diverted funds, fabricated ledgers, moved funds back and forth to “create assets for Kapil and Deeraj Wadhawan” using public money. Both are in custody in connection with previous fraud cases against them.
DHFL’s loan accounts have been declared non-performing assets by creditor banks at various times, they said. When the DHFL was investigated in January 2019 following media reports of allegations of siphoning off funds, the lending banks held a meeting on February 1, 2019 and instructed KPMG to conduct a “special audit review” of the DHFL from April 1, 2015 December 31, 2018 On October 18, 2019, the banks also issued a prospectus against Kapil and Deeraj Wadhavans to prevent them from leaving the country, they said. UBI asserted that KPMG, during its audit, recorded the transfer of funds under the guise of loans and advances to related and related entities and individuals of DHFL and its directors.
A check of the ledgers showed that 66 entities with similarities to DHFL promoters were paid Rs 29,100 crore, of which Rs 29,849 crore remained outstanding. “Most of the transactions of such legal entities and individuals were in the nature of investments in land and real estate,” the bank says. It turned out that DHFL paid out funds within one month on several occasions, diverted funds for investments in Shetty’s businesses, rolled over loans without NPA classification, payments of hundreds of crores were not tracked on bank statements, and an unreasonable moratorium on principal. and gave interest.
Another large outstanding amount in DHFL accounts was Rs 11,909 crores arising from loans and advances of Rs 24,595 crores issued to 65 entities between April 1, 2015 and December 31, 2018. just like retail loans on their books. “This resulted in a bloated retail loan portfolio of 1,81,664 false and non-existent retail loans totaling Rs 14,095 crores outstanding. (OLPL).
“It appeared that the OLPL category was largely spun off from the aforementioned Rs 14,000 crore non-existent retail loans, of which Rs 11,000 crore was transferred to OLPL loans and Rs 3,018 crore was kept as part of the retail portfolio as unsecured. retail loans,” the statement said. According to them, DHFL, its directors and executives continued to claim that they were trying to relieve stress on the company through various means, such as securitization of the pool of home loans, project loans, divestment of promoters’ shares in the company. Kapil Wadhavan went on to assert that DHFL has six months of cash liquidity and will remain cash surplus even after reviewing all repayment obligations, the bank claims. After being “falsely assured” by lenders, DHFL deferred interest obligations on term loans in May 2019, which continued after that as the accounts were declared non-performing assets, they said.