Daijiworld Media Network - New Delhi
New Delhi, Aug 28: The Enforcement Directorate (ED) has frozen a bank deposit of $5.41 million (around Rs 51.75 crore) as alleged proceeds of crime in its ongoing money-laundering investigation into the Rs 34,615-crore bank loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL) and its promoters.
According to an official statement issued on Friday, the amount was frozen following a search operation conducted against DHFL on August 19 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation has revealed that a foreign property, Hurtmore House in the United Kingdom, held in the name of Vanita Wadhawan, wife of DHFL promoter Kapil Wadhawan, was allegedly disposed of through a series of transactions involving the creation of a fictitious liability in her name.
A purported loan agreement was executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, following which the UK property was mortgaged.
The ED said its investigation revealed that the arrangement was allegedly used to create an encumbrance over the foreign asset to settle a liability in India arising from the DHFL loan fraud.
The property was subsequently sold in 2026, with the sale consideration directed to the bank account of M/s Al Jalore Trading FZE maintained in India, instead of being received by the registered owner, Vanita Wadhawan.
According to the agency, the transaction involved the dissipation of alleged proceeds of crime and the use and disposal of a foreign asset in a manner intended to facilitate settlement of an Indian liability through a structured arrangement involving foreign property and entities.
During the search, ED examined the bank account of M/s Al Jalore Trading FZE and found approximately $5.41 million, which the agency said represented proceeds of crime. The amount was frozen under Section 17(1A) of the PMLA, 2002.
The agency also seized other incriminating documents and records relating to the transactions and assets under investigation.
The ED initiated its investigation based on an FIR registered by the CBI, AC-VI, New Delhi, following a complaint filed by Union Bank of India on behalf of a consortium of 17 banks.
The FIR alleges that accused persons, including Kapil Wadhawan and Dheeraj Wadhawan, entered into a criminal conspiracy to cheat the consortium banks, which had sanctioned credit facilities totalling Rs 42,871.42 crore to DHFL.
The loan funds were allegedly siphoned off and misappropriated through falsification of DHFL’s books of accounts, resulting in a wrongful loss of approximately Rs 34,615 crore to the consortium lenders, according to the ED.
Further investigation in the case is underway.