As the Central Bureau of Investigation (CBI) has filed a new case against earstwhile DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan for defrauding a consortium of 17 banks led by Union Bank of India for Rs 34,615 crore, it has become the biggest bank fraud case registered by the agency.
The agency booked the Dewan Housing Finance Corporation Ltd (DHFL), Kapil Wadhawan, the then CMD, Dheeraj Wadhawan, the director and six realtor companies for allegedly being part of criminal conspiracy to cheating the consortium led by the Union Bank of India to the tune of Rs 34,615 crore, the officials said. The agency has acted on a complaint from the bank on February 11, 2022, they said. Here’s the details of the issue:
A 17-member lender consortium had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. DHFL was hit by an investigation in January 2019 after media reports on allegations of siphoning of funds surfaced.
The lenders held a meeting on February 1, 2019, and appointed KPMG to conduct a “special review audit" of DHFL from April 1, 2015, to December 31, 2018. The banks also issued a look-out circular against Kapil and Dheeraj Wadhawan on October 18, 2019, to prevent them from leaving the country. Union Bank of India (UBI) has alleged that KPMG, in its audit, red-flagged diversion of funds in the garb of loans and advances to related and interconnected entities and individuals of DHFL and its directors.