ED Freezes ₹51.75 Crore In DHFL Loan Fraud Probe, Traces Funds To UK Property

The Enforcement Directorate (ED) has frozen approximately Rs 51.75 crore in an Indian bank account belonging to Dubai-based M/s Al Jalore Trading FZE. This action is part of a probe into alleged fraud involving Dewan Housing Finance Corporation Ltd (DHFL), with the funds reportedly representing proceeds from crime linked to the diversion of loans.

The ED seized documents and records related to the transactions during searches conducted on August 19 under the Prevention of Money Laundering Act (PMLA). The investigation stems from a complaint filed by Union Bank of India on behalf of 17 other banks, alleging that Kapil Wadhawan and Dheeraj Wadhawan, DHFL promoters, conspired to defraud the consortium of banks that had lent DHFL a total of Rs 42,871.42 crore.

The alleged scheme involved falsifying DHFL's records, resulting in an estimated loss of Rs 34,615 crore to the lenders. The ED traced part of the alleged proceeds to a property in the UK, Hurtmore House, held in the name of Kapil Wadhawan's wife, Vanita Wadhawan. The agency claims that Vanita Wadhawan allegedly created a fictitious liability in her name through a loan agreement with Al Jalore Trading FZE, against which the UK property was mortgaged.

This was used to secure a lien on a foreign asset to settle an Indian debt arising from the alleged DHFL loan fraud.