New Delhi: The Enforcement Directorate (ED) has frozen alleged proceeds of crime worth approximately ₹51.75 crore in connection with the alleged loan fraud and money laundering case involving Dewan Housing Finance Corporation Limited (DHFL). According to the agency, the action followed a search conducted on August 19, 2026, under the Prevention of Money Laundering Act (PMLA). The investigation is also examining the movement of proceeds from the sale of a property in the United Kingdom into a bank account linked to an entity operating in India.
According to the ED, the case originates from an FIR registered by the Central Bureau of Investigation’s AC-6 unit in New Delhi. The FIR was registered on the basis of a complaint filed by Union Bank of India on behalf of a consortium of 17 banks. The agency has alleged that Kapil Wadhawan, Dheeraj Wadhawan and others conspired to defraud banks in connection with loan facilities sanctioned to DHFL amounting to approximately ₹42,871.42 crore.
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₹42,871 Crore Loan Facilities Under Investigation
The ED has alleged that DHFL’s books and financial records were manipulated and that loan funds were diverted and misused through various transactions. According to the agency, the alleged fraud resulted in wrongful losses of approximately ₹34,615 crore to the consortium of 17 lenders.
During the investigation, the ED examined not only transactions carried out in India but also foreign assets and financial arrangements connected with the case. One of the transactions under scrutiny involves Hurtmore House in the United Kingdom.
UK Property and Alleged Fictitious Liability
According to the agency, Hurtmore House was held in the name of Vanita Wadhawan, wife of Kapil Wadhawan. The ED has alleged that a liability connected with the property was created through a purported arrangement involving Al Jalore Trading FZE and Vanita Wadhawan.
The agency said a purported loan agreement was executed between the two parties, under which the property was mortgaged and a charge was created over the foreign asset. According to the ED, the arrangement was allegedly used in connection with the settlement of liabilities in India linked to the DHFL loan fraud case.
The property was sold in 2026. The agency has alleged that the proceeds from the sale were not transferred to the registered owner but were instead credited to the bank account of Al Jalore Trading FZE operating in India.
During the search and subsequent examination of the account, the ED identified approximately USD 5.41 million, equivalent to around ₹51.75 crore, as alleged proceeds of crime. The agency froze the amount under Section 17(1A) of the PMLA.
Documents and Records Seized
During the search operation, the ED also seized documents and records that it considers relevant to the investigation. Investigators are examining these documents alongside financial transactions to establish how the proceeds generated from the foreign property were ultimately used.
A key focus of the investigation is the flow of funds between the foreign property, entities operating in India and various bank accounts. The agency is examining cross-border transactions and the alleged liability structure to establish the complete financial trail.
Greater Scrutiny of Banking and NBFC Transactions
The DHFL case highlights the growing scrutiny of large corporate loans, financial records, foreign assets and cross-border transactions in alleged money laundering investigations. Agencies are examining whether funds obtained through large loan facilities were used for purposes other than those for which they were sanctioned and whether the money was subsequently moved through companies, accounts or assets.
The investigation also underscores the importance of tracing financial transactions across jurisdictions when alleged proceeds of crime are linked to foreign assets. Establishing the origin, movement and ultimate beneficiary of funds remains a key part of the ED’s probe.
The investigation is continuing. The ED is examining foreign assets, bank accounts, companies, financial records and related documents to establish the complete flow of the alleged proceeds of crime. Further action will depend on the evidence and financial links established during the ongoing investigation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
