Mumbai: The Central Bureau of Investigation has registered a case on complaint from Union Bank of India, Industrial Finance Branch, Mumbai against Dewan Housing Finance Ltd (DHFL), its former CMD Kapil Wadhawan, director Dheeraj Wadhawan and others on the allegation that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of over Rs. 34,615 crore by siphoning off loans availed from the said banks and falsifying the books of DHFL and creating Shell Companies and false entities that had come to be known as “Bandra Book Entities”.
It is alleged that DHFL and its promoters had created a number of shell companies & fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities. It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions. The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company.
Searches were conducted on Wednesday 22 June 2022 at 12 locations in Mumbai at the premises of accused which led to recovery of incriminating documents.