Why was Dheeraj Wadhawan arrested in Rs 34,000 crore DHFL scam?

Dheeraj Wadhawan, the previous director of Dewan Housing Finance Restricted (DHFL), was despatched to judicial custody on Tuesday after showing earlier than a particular courtroom in Delhi.

The Central Bureau of Investigation (CBI) arrested him in reference to a Rs 34,000 crore financial institution fraud case.

Wadhawan was arrested in Mumbai on Monday evening and introduced earlier than a particular courtroom within the space, the place he was remanded to judicial custody on Tuesday, in accordance with an official.

Earlier, each Wadhawan brothers, Dheeraj and Kapil, had been arrested in reference to the case on July 19, 2022.

What’s the Rs 34,000 DHFL rip-off?

In response to the central probe company’s fees, Dheeraj Wadhawan and his brother Kapil allegedly defrauded a consortium of 17 banks to the tune of Rs 34,000 crore, making it the largest banking mortgage fraud within the nation.

Kapil and Dheeraj Wadhawan, together with others, are accused of partaking in a felony conspiracy, misrepresenting and concealing information, committing a felony breach of belief, and misusing public funds as per the cost sheet.

This allegedly resulted in defrauding the consortium of Rs 34,615 crore by defaulting on mortgage repayments from Might 2019 onwards.

The CBI has accused the corporate of partaking in monetary irregularities, fund diversions, falsifying information, and fascinating in round transactions to “generate belongings for Kapil and Dheeraj Wadhawan” utilizing public funds.

In response to officers, DHFL mortgage accounts had been categorised as non-performing belongings by varied lender banks at totally different intervals.

Following media experiences on allegations of fund diversion in January 2019, DHFL got here below investigation.

After that on February 1, 2019, lender banks convened a gathering and appointed KPMG to conduct a “particular overview audit” of DHFL from April 1, 2015, to December 31, 2018.

The audit findings revealed the diversion of funds disguised as loans and advances to associated entities and people related to DHFL and its administrators.

The scrutiny of account information revealed that 66 entities related to DHFL promoters had been disbursed Rs 29,100 crore, with Rs 29,849 crore excellent, as alleged by the CBI.

In response to the allegations, the vast majority of these transactions concerned investments in land and properties