The Enforcement Directorate (ED) has frozen bank deposits worth ₹51.75 crore ($5.41 million) under the Prevention of Money Laundering Act (PMLA) as part of its ongoing investigation into the ₹34,615 crore bank loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL).
Key Highlights of the Action
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Searches Conducted: The ED carried out fresh search operations on August 19, leading to the freeze order on the targeted account.
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Siphoned Overseas Asset: The investigation uncovered that a UK-based residential property named “Hurtmore House,” held in the name of Vanita Wadhawan (wife of promoter Kapil Wadhawan), was illegally disposed of through structured overseas transactions.
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Fictitious Liability Scheme: A fictitious loan agreement was executed between Vanita Wadhawan and M/s Al Jalore Trading FZE, mortgaging the UK property to create an artificial charge.
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Proceeds of Crime: When the UK property was sold, the sale proceeds were routed into the bank account of Al Jalore Trading FZE operating in India instead of returning to the registered owner. The ED identified these funds as proceeds of crime and subsequently froze the account under Section 17(1A) of the PMLA.
Background on the DHFL Scam
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Alleged Fraud: Promoters Kapil Wadhawan, Dheeraj Wadhawan, and associates are accused of entering into a criminal conspiracy to defraud a 17-bank consortium led by Union Bank of India.
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Loan Siphoning: Credit facilities totaling ₹42,871 crore were sanctioned to DHFL, out of which ₹34,615 crore was siphoned off through falsified books of accounts and shell entities.
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CBI FIR: The PMLA probe stems from an initial FIR registered by the CBI’s AC-VI unit in New Delhi based on the consortium’s formal complaint.
