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The CBI has arrested Dheeraj Wadhawan, former director of Dewan Housing Finance Limited (DHFL), in connection with allegedly defrauding a consortium of 17 banks of INR 34,000 crores. Wadhawan and his brother Kapil Wadhawan, who was earlier arrested, have been charged by the CBI along with 73 other entities. While the special court had granted them bail citing an incomplete investigation, the High Court and Supreme Court overturned this decision. DHFL allegedly committed financial irregularities, diverted funds, fabricated books and routed money to entities linked to the Wadhawans. Currently, Dheeraj Wadhawan, Kapil Wadhawan and another accused Ajay Nawandar are in judicial custody.
The CBI has arrested former DHFL director Dheeraj Wadhawan in connection with allegedly defrauding a consortium of 17 banks of INR 34,000 crores. Wadhawan was arrested from Mumbai and produced before a special court, which remanded him to judicial custody. Advertisement
Wadhawan's brother Kapil was previously arrested in the case on July 19, 2022. The CBI had filed charges against 75 entities, including Kapil and Dheeraj, on October 15, 2022. They were granted bail by the special court on December 3, citing an incomplete investigation, but the Delhi High Court and Supreme Court later overturned this decision.
In the meantime, Dheeraj Wadhawan was granted interim bail in another case by the Bombay High Court for medical treatment. His protection from CBI arrest in that case ended on May 2, 2024. The CBI arrested Wadhawan after this period.
Currently, three accused - Dheeraj and Kapil Wadhawan, and Ajay Nawandar - are in judicial custody. The CBI case is based on a complaint from Union Bank of India, the lead bank in a 17-member lender consortium that had extended credit facilities to DHFL to the tune of INR 42,871 crore between 2010 and 2018.
The CBI chargesheet alleges that Kapil and Dheeraj Wadhawan, along with others, concealed information and misused public funds, cheating the consortium of INR 34,615 crores by defaulting on loan repayments from May 2019. DHFL allegedly committed financial irregularities, diverted funds, fabricated books and routed money to entities linked to the Wadhawans.
DHFL loan accounts were declared non-performing assets at different points of time by lender banks.
When DHFL was hit by investigation in January 2019 after media reports on allegations of siphoning off funds surfaced, the lender banks 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 audit found DHFL diverted INR 29,100 crores to related entities and individuals of DHFL and its directors.
The scrutiny of account books showed that 66 entities having commonalities with DHFL promoters were disbursed INR 29,100 crore against which INR 29,849 crore remained outstanding, the CBI has alleged. Most transactions by these entities were for land and property investments, alleges the CBI. The arrest of Dheeraj Wadhawan is an important development in the CBI's ongoing investigation into what is one of India's biggest bank fraud cases.
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