The CBI books Wadhawans of DHFL
CBI books Wadhawans of DHFL, its former CMD Kapil Wadhawan, and director Dheeraj Wadhawan about a bank fraud involving Rs 34,615 crore.
Kapil Wadhawan and Dheeraj Wadhawan, and 13 others were accuse of defrauding a consortium of 17 banks of over Rs 34,000 crore.
The Union Bank of India and other 17 consortiums filed an FIR against Wadhwans and other 13 companies. All the assets were already seize after the fraud cases.
Until now, Nirav Modi was leading the PNB fraud case of Rs. 13000 crore, and after that, ABG Shipyard loan fraud (Rs 20,000 crore) were consider to be the biggest.
The CBI also searches around 11 locations across the country. The Union Bank of India mention that since 2010 the Wadhawans of DHFL extend the credit facilities of Rs. 42,000 crore by the consortium, of which Rs 34,615 crore remains outstanding. The loan was declare NPA in 2019 and fraud in 2020.
All the assets were seize in 2019, and the CEO and other members were already in this charge and unable to go anywhere outside the country.
According to the forensic audit conducted by the KPMG in 2020-21 of DHFL loan accounts observed that it is mentioned that “large amounts were disbursed as loans & advances by the borrower company to several interconnected entities and individuals with commonalities to DHFL Promoter Entities, which were used for the purchase of shares/debentures.”
According to the CBI books Wadhawans, the Sudhakar Shetty of Suhana Group and 10 other real estate companies. All of them have to answer the court about all the frauds and remain in the country.
The KPMG audit also indicates “significant financial irregularities, diversion of funds through related parties, fabrication of books to show fraudulent non-existent retail loans, round-tripping of funds and utilization of diverted amounts for creating assets by Sh. Kapil Wadhawan, Sh. Dheeraj Rajesh Kumar Wadhawan and their associates.”
In further reportsof CBI books Wadhawans, it is mention that a total of 65 entities were relate to the DHFL and Wadhawans.
On the other hand, Wadhawans handled 40 entities only by appointing directors, auditors and the income tax who manage finances.
When it Started?
In 2019 only the DHFL defaulted, but it takes 2 years to declare it publicly. Before that, NBFC also faced some problems in raising funds pursuant to the default in commitments by IL&FS Group concerns.
The KPG audit also finds the diversion of funds disguised as loans to related and interconnected entities and individuals of DHFL and its directors.
“Most of the transactions of such entities and individuals were like investments in land and properties,” the bank alleged.
DHFL and its promoters listed Rs 14,000 crore, disburse as Project Finance, as retail loans in their books.
Then they create a separate database of loans under the name “Bandra Books”, which were maintain and were later merge with Other Large Project Loans (OLPL).
“It was reveal that the OLPL category was largely carve out of the aforesaid non-existent retail loans amounting to Rs 14,000 crore.
Out of which Rs 11,000 crore was transferr to OLPL loans and Rs 3,018 crore was retaine as a part of the retail portfolio as unsecure retail loans,” it allege.
Kapil Wadhwan maintained the book for 6 months of liquidity cash, merged with another large enterprise, and then removed it from the books.
The CBI has already started their investigation in other cities such as Mumbai, Pune, Chennai, Hyderabad, Ahmedabad, etc. Here is the list of banks such as Union Bank of India, SBI Bank, Canara Bank, Bank of India and other finance companies.
How Much Amount?
According to the CBI investigation, 17 and only four private banks. Such as HDFC, Federal Bank, Karnataka Bank and South Indian Bank — were taken for a ride by the DHFL. However, the amounts defaulted are comparatively less.
For example, while HDFC lost ₹349 crores out of the ₹350 crores sanction. Federal Bank lost ₹202 crores (from the ₹300 crores released).
Karnataka Bank’s loss was ₹185 crores (₹200 crores sanctioned). And South Indian Bank’s NPA was the lowest at ₹71.86 crores (₹332 crores sanctioned).
The CBI also stated that UBI, e-Andhra Bank and e-Corporation Bank subscribed to non-convertible debentures of the DHFL from 2016 to 2018.
The three NCDs issue were subscribe by the bank, including one of ₹250 crore. Which was redeemable at the end of three years with an annual coupon of 8.90 per cent.
But the company default on its entire loan repayment obligations to the banks from May 2019, and the NCDs were also not redeem.
The Reserve Bank of India appointed RS Subramania Kumar. As administrator to control DHFL and reported to NCLT, Mumbai, for proceedings under the Insolvency and Bankruptcy Code of 2016.
So now, until the bankruptcy isn’t solve, not a single person will be under the control of CBI, and no one can remove the assets from one place to another.
Yes, this will affect the GDPR growth of the country. So now we all have to wait for the court verdict and how this money is coming back to India. It is necessary to understand that this kind of incident affects the country’s financial condition.