CBI files indictment against ex-DHFL CMD Kapil Wadhawan and 74 others

The CBI on Saturday filed an indictment against former CMD Kapil Wadhawan of Dewan Housing Finance Ltd (DHFL) and 74 others in connection with a Rs 34,615 crore bank fraud case, officials said.

In its indictment filed in a special CBI court here, the agency also named director Dheeraj Wadhawan and former CEO Harshil Mehta as defendants in the mega-scam case, they said.

The agency had registered a case in June in the DHL bank fraud case for allegedly defrauding a consortium of 17 banks to the tune of Rs 34,000 crore, making it the biggest bank loan fraud in the country, have reported. officials said.

In the indictment, the agency listed 18 people, including former chairman and chief executive (CMD) Kapil Wadhawan, and 57 companies through which funds were misappropriated, they alleged.

Officials said a lawyer, Ajay Vazirani, businessman Ajay Navandar, several accountants, former executives of DHFL and other related companies were named in the indictment as defendants. .

The CBI had booked the Wadhawans and others on a complaint from Union Bank of India, the head of the 17-member lender consortium that had provided credit facilities to DHFL of Rs 42,871 crore between 2010 and 2018 .

The agency in its indictment alleged that Kapil and Dheeraj Wadhawan, in a criminal conspiracy with others, misrepresented and concealed facts, committed criminal breach of trust and misused public funds to deceive the consortium to the tune of of Rs 34,615 crore by not lending. refunds from May 2019.

The CBI alleged that the company committed financial irregularities, embezzled funds, fabricated books and went back and forth to “create assets for Kapil and Dheeraj Wadhawan” using public funds.

Both are in custody in connection with previous fraud cases against them.

The DHCPl loan accounts have been declared non-performing assets at different times by the lending banks, the officials said.

When DHCPL was investigated in January 2019 after media reports of embezzlement allegations, the lending banks held a meeting on February 1, 2019 and appointed KPMG to conduct an “audit of ‘Special Review’ from DHFL from April 1st. , 2015, as of December 31, 2018.

The audit revealed the misappropriation of funds in the form of loans and advances to related and interconnected entities and individuals of DHFL and its directors.

Examination of books of accounts showed that 66 entities having commonalities with the DHFL promoters received Rs 29,100 crore against which Rs 29,849 crore remained unpaid, the CBI alleged.

Most of the transactions of these entities and individuals were in the nature of investments in land and property, he alleged.

The CBI has kept the investigation into other aspects of the case open, officials said.

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