The Central Bureau of Investigation (CBI) on Wednesday has raided 12 locations in Mumbai after booking Dewan Housing and Finance Limited (DHFL)’s Kapil and Dheeraj Wadhawan for allegedly cheating a consortium of Union Bank of India-led 17 banks of 34,615 crore. This is the biggest ever bank fraud probe that the agency has undertaken so far.
The Wadhawans’ office and residence were among the places raided after the registration of the First Information Report (FIR) against them on Monday. In the FIR filed, the agency has said that the promoters of DHFL allegedly conspired with others, which included the public servants, and induced the banks to sanction and disburse loans worth 42,871 crores between 2010 and 2018. One Sudhakar Shetty and 10 companies have also been named.
Last year, Piramal Group took over control of DHFL through the corporate insolvency resolution process.
The FIR said that the Wadhawan brothers diverted the funds to entities which they controlled by sanctioning loans to them without due diligence or obtaining adequate securities through falsification of books of accounts, causing a loss of 34,614.88 crores to the consortium.