The Central Bureau of Investigation (CBI) has filed a chargesheet against Dewan Housing Finance Corporation Limited (DHFL), its former CMD Kapil Wadhawan, and 46 others in connection with a case involving a fraudulent scheme to defraud a consortium of 17 banks of ₹61,771.60 crore.
The chargesheet details how DHFL allegedly siphoned off funds through fictitious loans disbursed to shell companies controlled by Wadhawan and others. These shell companies lacked genuine business operations and were used to route funds back to DHFL as “loans” or investments, creating a circular flow of money.
Key accusations include criminal conspiracy, cheating, forgery, and corruption. The investigation revealed that DHFL deliberately concealed crucial information from the banks regarding the end-use of the loans and the true nature of the borrowers. Loan applications were allegedly fabricated with inflated valuations of properties used as collateral.
The accused include DHFL directors, senior officials, valuers, and individuals linked to shell companies. The CBI alleges that the valuers colluded with DHFL to provide inflated property valuations, enabling the company to secure larger loans than warranted.
The consortium of banks, led by Union Bank of India, had extended credit facilities to DHFL. The loans were later declared Non-Performing Assets (NPAs). The CBI investigation was initiated based on complaints from these banks.
The chargesheet focuses on 24 accounts involving ₹14,545 crore, representing the first phase of the investigation. The CBI is continuing its investigation into other aspects of the case, including the role of individuals who benefited from the scheme and the recovery of the defrauded funds. Further chargesheets are expected to be filed as the investigation progresses. The alleged fraud is one of the largest banking frauds uncovered in recent years.
