The Enforcement Directorate (ED) has provisionally attached immovable and movable assets worth ₹185.84 crore, including 154 residential flats in Mumbai, in connection with its money-laundering investigation against Dewan Housing Finance Corporation Limited (DHFL) and its promoters. The case revolves around the alleged ₹34,615-crore loan fraud, considered one of India’s biggest banking scandals.
According to ED officials, the attached properties are located in Kurla, Mumbai, and include receivables from 20 flats. The action was taken under provisions of the Prevention of Money Laundering Act (PMLA).
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Scale of the Alleged Fraud
The ED investigation, based on a Central Bureau of Investigation (CBI) FIR registered in June 2022, accuses DHFL’s promoters Kapil Wadhawan and Dheeraj Wadhawan, along with others, of cheating a consortium of 17 banks led by Union Bank of India.
The probe alleges that the accused fraudulently obtained loans of ₹42,871 crore and defaulted, causing a wrongful loss of ₹34,615 crore to the lending banks. Investigators claim that the funds were diverted and misappropriated by falsifying DHFL’s accounts.
Methods of Diversion and Manipulation
ED officials said the Wadhawan brothers allegedly used proxy companies and other conduits to siphon off DHFL’s funds. In 2017–18, they purportedly conspired to manipulate DHFL’s publicly listed stock by routing diverted money into pre-arranged trades through brokers, artificially inflating the company’s share price and trading volumes.
This, the agency noted, was part of a broader scheme to conceal the misappropriation of funds and maintain market confidence in DHFL at the time.
Previous Attachments and Total Seizures
The Friday action adds to earlier seizures made by the ED. In October 2023, the agency had attached assets worth ₹70.39 crore, which included:
- Paintings and sculptures valued at ₹28.58 crore
- High-end watches worth ₹5 crore
- Diamond jewellery valued at ₹10.71 crore
- A 20% stake in a helicopter worth ₹9 crore
- Two flats in Bandra worth ₹17.1 crore
With the latest action, the total provisional attachments in the case now stand at ₹256.23 crore. The ED has already filed a charge sheet in a Mumbai special court in April this year.
Regulatory and Legal Fallout
The alleged financial misconduct prompted the Reserve Bank of India (RBI) to supersede DHFL’s board in November 2019 and initiate insolvency proceedings. Later, in September 2021, Piramal Enterprises acquired DHFL for ₹34,250 crore under a resolution plan approved by the National Company Law Tribunal (NCLT). This included a cash payout of ₹14,700 crore to creditors.
Kapil and Dheeraj Wadhawan, also accused in the Yes Bank fraud case, are already facing multiple legal proceedings and remain in custody.