DHFL loan fraud case: Delhi Court sends Wadhwan brothers to 8-day CBI remand

Special Judge Vishal Gogne, on Tuesday, while passing the order in remand days, said, "seen in the context of the allegations, accused Kapil Wadhawan and Dheeraj Rajesh Wadhawan, in their capacity as the Chief Managing Director and Director respectively of DHFL for the period 2010 onwards, do require a probe in their role firstly in obtaining the large volume of loans inter-alia about Rs 42,000 crores and then not only occasioning default in repayment of about 34,000 crores but also allegedly diverting funds to the extent of Rs 29,000 crores."

The Court finds it a case of manifest necessity for the Investigation Officer to be granted the custody (police custody) of accused Kapil Wadhawan and Dheeraj Rajesh Wadhawan in aid of the investigation.

"Custodial interrogation is thus likely to reveal material facts related to a possibleconspiracy, the complicity of other accused persons, routing and re-routing of the allegedly diverted funds, details of the entities where such funds were immersed and similar facets of the investigation," said the court.

That paintings worth about 30 crores, allegedly purchased by accused Kapil Wadhawan, were tracked to the premises of co-accused Ajay R. Nawandar does justify the submission of the Sr. PP for the CBI that greater information relating to the use/diversion of the funds may be obtained through custodial interrogation, the court noted.

The Senior Advocate KTS Tulsi and Sr Advocate Vikas Pahwa appeared for accused Ajay R. Nawandar in the case. Senior Advocate Rebecca John appeared for Dheeraj Rajesh Wadhawan and Advocate Vijay Aggarwal appeared for Kapil Wadhawan in the case.

Senior Public Prosecutor Raj Mohan Chand, along with Rattan Deep Singh and Arvind Kumar Public Prosecutor for CBI, submitted that the two accused persons, arrested today, are the principal architects of the concerted diversion of loan amounts amounting to about Rs 29,000 crores (approximately) out of the NPA amount of Rs 34,000 crores (approximately) in relation to the total loans of approximately Rs. 42,000 crores advanced to M/s Dewan Housing Finance Corporation Limited (DHFL).

These loans were advanced by the complainant bank i.e. the Union Bank of India and other banks, forming a consortium of 17 Indian banks, to DHFL which is a non-banking finance company engaged in extending financial assistance to low and middle-income group individuals for the acquisition of houses.

CBI lawyers further stated that the independent audit of the funds loaned by the consortium to the DHFL revealed that these funds were instead disbursed by the DHFL to connected entities and individuals with commonalities to DHFL promoters/ directors.

According to the CBI, out of 35 such entities, 25 entities had minimal operations and were still disbursed loans by DHFL.

Thereafter, 31 more connected entities have purportedly emerged. The sum of Rs 29,000 crores (approx) has allegedly been together diverted to these 66 entities. (ANI)