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DHFL shares slip 5% as ED alleges Rs 12,773 crore fraud

DHFL CMD had allegedly siphoned off bank money with the help of 79 shadow entities.

Last Updated: Jan 30, 2020, 11.09 AM IST
Kapil Wadhawan
The agency arrested Kapil Wadhawan on Monday. His brother, Dheeraj, is out on bail.
Shares of Dewan Housing Finance Corporation (DHFL) declined nearly 5 per cent in Thursday’s early trade after reports that former DHFL CMD Kapil Wadhawan had allegedly siphoned off Rs 12,773 crore bank money with the help of 79 shadow entities and one lakh fictitious customers.

The scrip traded 4.90 per cent down at Rs 13.60 at around 9.25 am, while the benchmark BSE Sensex was down 158 points, or 0.38 per cent, at 41,040.

“The Enforcement Directorate (ED) has told a dedicated court dealing with money laundering offences that Rs 12,773 crore was allegedly siphoned off over the past decade from DHFL through about one lakh fictitious borrowers which were created to route the money into about 80 shell companies,” ET reported.

The agency, probing arrested promoter of the embattled home financier Kapil Wadhawan, told a Prevention of Money laundering Act (PMLA) court that the Wadhawans had allegedly used a part of these funds to pay the late drug lord Iqbal Memon, alias Iqbal Mirchi.

The agency arrested Kapil Wadhawan on Monday. His brother, Dheeraj, is out on bail.

“Wadhawan, through five shell companies, purchased three properties at Worli from Iqbal Mirchi. The value of these properties, as per book accounts, were shown as Rs 111 crore, but a payment of more than Rs 150 crore was made in Dubai through the hawala channel. The loans were given to these shell companies by DHFL in a circuitous manner, and a part of this loan was used to make payments to Mirchi,” said an officer privy to the probe details.

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