Former Dewan Housing Finance Corporation Ltd. (DHFL) director, Dheeraj Wadhawan, has been arrested by the Central Bureau of Investigation (CBI), in connection with a ₹34000 crore bank fraud case. This arrest involves a complex of alleged fraudulent activities involving multiple banks and shell companies in one of the largest banking frauds in Indian history.
Wadhawan was arrested in Mumbai on Monday evening and produced before a special court in Delhi on Tuesday. The court remanded him to judicial custody. This action follows the CBI’s previous charge-sheeting of Wadhawan in 2022.
Case Background
The roots of this case can be traced back to a complaint lodged by the Union Bank of India’s Industrial Finance Branch, Mumbai, in June, 2022. Allegations had surfaced that Wadhawan, along with his associates, had put together a scheme to dupe a consortium of 17 banks, led by Union Bank of India, of over ₹34615 crore. The modus operandi included falsification of books, creation of shell companies and appropriation of funds disguised as loans and investments.
ED has provisionally attached assets worth Rs. 70.39 Crore under the provisions of PMLA, 2002 belonging to Kapil Wadhawan and Dheeraj Wadhawan in DHFL-UBI Fraud case. The attached assets are in the form of Paintings & Sculpture worth Rs. 28.58 Crore, Watches worth Rs. 5 Crore,…
— ED (@dir_ed) October 26, 2023
SEBI
The Securities Exchange Board of India (SEBI) initiated actions to recover pending dues totalling ₹22 lakh from Wadhawan and his brother Kapil (former promoters of DHFL). SEBI’s directive, issued in February 2021, sought the attachment of bank accounts, shares and mutual fund holdings. The brothers had failed to settle fines imposed for non-compliance with disclosure norms.
Former Director’s Appeal
Despite facing charges in the DHFL fraud, Wadhawan had sought bail on medical grounds, citing health issues following spinal surgery. His plea, initially rejected by a trial court, prompted an appeal to the Delhi High Court.
