DHFL Rs 32,930 crore fund diversion case: CBI court orders charges against Wadhawan brothers

Mumbai: A special CBI court in Delhi has ordered framing of charges against former DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan among others in a ₹32,930-crore alleged fund diversion case, holding that the material on record raises "grave suspicion" of a conspiracy.

In an order pronounced on Thursday, special judge Sanjeev Kumar Malhotra directed that the Wadhawan brothers face charges under various sections of the IPC, relating to criminal conspiracy, cheating, forgery and falsification of accounts.

The case relates to alleged diversion and siphoning of funds raised by Dewan Housing Finance Corporation Ltd (DHFL) from a consortium of 17 banks led by Union Bank of India. The CBI has alleged that the lenders were cheated to the extent of ₹34,614.88 crore through misrepresentation, concealment of facts, criminal breach of trust and abuse of public funds.


'Bandra Book' & fictitious retail loans

A significant part of the prosecution case centres on the alleged use of a fictitious 'Bandra branch' and the so-called 'Bandra Book' to conceal large loans extended to entities allegedly linked to the DHFL promoters. CBI alleged that ₹11,765.11 crore was disbursed to 87 shell companies between 2007 and 2017. The prosecution also alleged that a 'Bandra branch', bearing code 001 in DHFL's accounting system, did not physically exist and was used to camouflage funds advanced to shell entities as retail home loans.