In the biggest ever loan fraud case in India, the CBI has named Kapil Wadhawan and Dheeraj Wadhawan, former promoters of Dewan Housing Finance Corporation Ltd (DHFL), among 13 accused in a consortium of 17 banks worth over Rs 34,000 crore. has created. Till now, the Nirav Modi-led PNB loan fraud (Rs 13,000 crore) and ABG Shipyard loan fraud (Rs 20,000 crore) were considered the biggest.
Sources said the agency is carrying out searches at 11 places across the country at the premises linked to the accused.
The CBI case has been registered on the complaint of Union Bank of India (UBI), the lead bank in the consortium. According to the UBI complaint, since 2010, DHFL has extended credit facilities to the tune of over Rs 42,000 crore by the consortium, of which Rs 34,615 crore is outstanding. The loan was declared NPA in 2019 and fraud in 2020.
According to a forensic audit of DHFL loan accounts conducted by KPMG in 2020-21, “large amounts were disbursed as loans & advances by the borrower company to a number of interconnected entities and individuals with commonalities to DHFL Promoter Entities, which were used for the purchase of shares/debentures.”
KPMG report
As per the KPMG report, most of the transactions of such entities/individuals were in the nature of investment in land/properties.
Besides the Wadhawans, the CBI has also registered a case against Sudhakar Shetty of Suhana Group and 10 other real estate companies.
UBI has alleged that the KPMG audit “significant financial irregularities, diversion of funds through related parties, creation of books to show fraudulent non-existent retail loans, round-tripping of funds and amount diverted for creation of assets”. The usage is indicated by Mr Kapil Wadhawan, Mr Dheeraj Rajesh Kumar Wadhawan and their associates.
According to the KPMG report, 66 units belonging to DHFL and Wadhawans had advanced loans of around Rs 30,000 crore in violation of all norms.
The CBI FIR alleges that out of these 65 entities, the Wadhawans single-handedly managed about 40 by appointing directors and auditors, handling income tax notices, maintaining secretarial records of these entities and managing overall control over the finances of these companies. controlled institutions.
DHFL defaulted on its loan payment obligations from May 2019. However, earlier, several NBFC companies faced problems in raising funds due to default in commitments by IL&FS Group. After this, there was a sharp fall in the share price of DHFL. As banks raised questions regarding the financial health of the company, the Wadhawans claimed that the fall in the share price was due to the sale of commercial papers by one of its investors and maintained that DHFL had strong liquidity for as long as six months.
There will be a cash and cash surplus even after considering all the repayment obligations for the financial year 2018-19. However, as per the FIR, these turned out to be bogus assurances.
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