Cobrapost Impact: CBI registers case against Dewan Housing
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Cobrapost Impact: CBI registers case against Dewan Housing

Newsdesk |
June 26, 2020

According to a Press Release dated 25 June 2020, the Central Bureau of Investigation has filed a Charge sheet against M/s Dewan Housing Finance Ltd; ShriKapil Rajesh Wadhawan; ShriDheeraj Rajesh Wadhawan; M/s Belief Realtors Pvt. Ltd; M/s RKW Developers Pvt. Ltd; M/s DOIT Urban Ventures (India) Pvt. Ltd; Ms. RoshniKapoor and ShriRanaKapoor in the court of Special Judge, CBI City Sessions Court, Mumbai.


New Delhi, 26 June 2020

The Central Bureau of Investigation has filed a Charge sheet against M/s Dewan Housing Finance Ltd; ShriKapil Rajesh Wadhawan; ShriDheeraj Rajesh Wadhawan; M/s Belief Realtors Pvt. Ltd; M/s RKW Developers Pvt. Ltd; M/s DOIT Urban Ventures (India) Pvt. Ltd; Ms. RoshniKapoor and ShriRanaKapoor in the court of Special Judge, CBI City Sessions Court, Mumbai.

It is noteworthy that the Dewan Housing Finance Limited’s (DHFL) illegal activitieswere brought to light by the intensive investigative endeavours of Cobrapost in February-March, 2019 whereby it unearthed a financial scam amounting to Rs 31,000 crores by DHFL. Cobrapost has already revealed to the public authorities various kinds of financial irregularities by DHFL which include Rs 14,168 crores in unsecured and secured but bad loans to companies controlled by the Wadhawan brothers, Kapil and Dheeraj,the chief promoters of DHFL. Moreover, Rs 5,200 crores in overseas assets, Rs 600 crores in TDS defaults, Rs 160 crores in money  laundering and Rs 1,000 crores in insider trading had also been reported, along with the relevant public documents that provided conclusive proof of siphoning of public funds to create private wealth.

In addition, 10% of DHFL shares were found to be in SAST violation, along with DHFL’s having disbursed Rs 7,390 crores in the name of slum rehabilitation that never happened. The DHFL’s modus operandi consisted of the NBFC consistently disbursing large sums of money in a single tranche to shell companies created by the Wadhawans via their stooges, which has no credibility, almost no paid-up capital or any discernible ROC charges. These companies would be used as pass-through corporations which immediately invested all the loan amount into buying shares of other companies controlled by the Wadhawans or their associates.

This way, thousands of crores of public money that DHFL loaned from public and private banks were easily and smoothly converted to private equity. Their auditors remained silent about the lack of accountability of these suspicious loans and none of these disbursals were red-flagged.

Eventually, regulatory bodies announced investigations against DHFL based on Cobrapost’s investigations. DHFL’s shares tanked, and both its auditors resigned after citing a number of irregularities that could not be conclusively solved by the NBFC’s inadequate response. DHFL has since then declared bankruptcy and is in talks with the banks to restructure its debts.

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