DHFL Scam- Dheeraj Wadhawan, the former director of Dewan Housing Finance Limited (DHFL), was sent to judicial custody on Tuesday after appearing before a special court in Delhi. The Central Bureau of Investigation (CBI) arrested him in connection with a Rs 34,000 crore bank fraud case.

The agency arrested Dheeraj Wadhawan in connection with the Yes Bank corruption case and was on bail.


According to the charge sheet filed by the CBI agency, Kapil and Dheeraj Wadhawan, along with others, are accused of engaging in a criminal conspiracy, misrepresenting and concealing facts, committing a criminal breach of trust, and misusing public funds.

This allegedly resulted in defrauding the consortium of Rs 34,615 crore by defaulting on loan repayments from May 2019 onwards.

The CBI has accused the company of engaging in financial irregularities, fund diversions, falsifying records, and engaging in circular transactions to “generate assets for Kapil and Dheeraj Wadhawan” using public funds.

DHFL loan accounts were categorized as non-performing assets by various lenders at different intervals.

In January 2019, DHFL came under investigation. After that on February 1, 2019, lender banks convened a meeting and appointed KPMG to conduct a “special review audit” of DHFL from April 1, 2015, to December 31, 2018.

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The audit findings revealed the diversion of funds disguised as loans and advances to related entities and individuals connected to DHFL and its directors. The scrutiny of account records revealed that 66 entities associated with DHFL promoters were disbursed Rs 29,100 crore, with Rs 29,849 crore outstanding, as alleged by the CBI. These transactions involved investments in land and properties.

CBI arrested Dheeraj Wadhawan

CBI had registered the DHFL case, which involved the alleged defrauding of a consortium of 17 banks amounting to ₹34,000 crore, making it the largest banking loan fraud in the country.

In February this year, the Securities and Exchange Board of India (SEBI) directed the attachment of bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters Dheeraj and Kapil Wadhawan to reclaim dues totalling ₹22 lakh.


The market regulator’s action followed the Wadhawan brothers’ failure to settle the fine imposed on them in July last year, relating to a case involving the violation of disclosure norms.

The outstanding dues of ₹10.6 lakh each from the Wadhawans encompass the initial penalty amount, along with accrued interest and recovery costs.

Back in July 2023, regulatory authorities imposed penalties of ₹10 lakh each on the Wadhawans, former promoters of DHFL (now known as Piramal Finance), for violating disclosure regulations.


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