CBI charges DHFL former CMD in ‘biggest’ banking fraud of Rs.34615 crore
According to officials, Dewan Housing Finance Ltd., its former CMD Kapil Wadhawan, director Dheeraj Wadhawan, and others have been charged with bank fraud of Rs.34,615 crore by the CBI, making it the biggest case probe by the agency.
As per CBI Press Release:
The Central Bureau of Investigation has registered a case on complaint from Union Bank of India, Industrial Finance Branch, Mumbai against private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servant(s) & private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of over Rs. 34,615 crore (approx.) by siphoning off loans availed from the said banks & falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as “Bandra Book Entities”.
The stated private corporation and its promoters are accused of setting up numerous shell companies and bogus entities (the Bandra Book entities) and syphoning off enormous sums of money by paying out money to these fictitious entities. Further allegations were that numerous instances of the accused diverting money for personal gain and falsifying books of accounts to mask and conceal questionable activities had been discovered by independent audits carried out by other private audit accounting organisations.
The audits also discovered other instances when substantial loans of value were given to such bogus businesses without carrying out any background checks or securing them with security. There have purportedly been instances of loans being approved and disbursed solely through e-mail exchanges for which no loan files were kept by the aforementioned private (Borrower) company.
Searches were conducted today at 12 locations in Mumbai at the premises of accused which led to recovery of incriminating documents.
Investigation is going on.