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How one family rode the housing boom to dizzying heights and now stands accused of a range of financial crimes

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A brilliant and well researched and written article. Recent happenings in NBFC sector only strengthens the conviction that your money is not safe in AAA rated companies. I can not believe that the rating agencies is not in the know of things to come till the last moment. Cobra post has to be applauded for the expose even though they had only touched the tip of the iceberg.

The article nicely depicts the fact that these guys with the connivance of the powers that be just extended the reel life to real life. What fun they should have had and continue to have. The pleasures of life look more alluring when one dances with the devil. No dust is going to settle down as scams will keep happening here as long as the politicians dip their hands too in the till.

Dilip (Victoria)

The banking regulators sit in cozy a/c offices & fly private jets, putting ifs & buts for commoners. I see no reason why Nirmala Sitharaman be questioned for such weird regulations. She should be warned first not to blame Congress after 6 years of BJP rule.

Vsharmishtha replies to Dilip

Dont forget , congress rules for most time in post-independence india , all this just-on-paper compnaies are result of poor laws designed in nation. congress has done very little to nothing to curb this . all this is seeing light of day now under bjp rule. M not a fan or blind bhakt of bjp, but its doing best to curb all this shady stuff, we have right to question govt but constructive criticism is far better than just blaming govt officials and ministers for doing thier job

replies to Vsharmishtha

I voted Modi directly in 2014 & his proxy in 2019.When country is unearthing corruption you need a very discreet FM for dexterous economic decisions which neither Jaitley was nor Sitharaman is. In my opinion Jaitley was a pseudo intellectual & Sitharaman is a socialist of the bygone era.

(Navi Mumbai)

Introduce conscription in India -18 months compulsory training in Military. This will instill values & discipline for all concerned.We learn only the way to make money, in the house & society, being a parasite.

Indian society rewards corrupt-manipulative-cheaters.They are praised and garlanded everywhere.When British came to india;they were surprised to know indian ruling class have zero morals and no compunction selling their nation to foreigners.

You have to understand indian mentality.Indians are extremely materialistic ,selfish and corrupt.If something generates enough bribes to satiate demands of babus-politicians-judges;it will exist for very long time.For these same reasons,dawood survived and prospered in india,despite harming nation.It is only after 2008 attacks,his economic wings in mumbai were cut off.So,pontificating and analysing scams-scandals won''t do enough.Indians hate purveyor of bad news and hard work.They believe in instant rags to riches stories.Their children want to be filstars-rich businessmen-CEO-babus-judges by any means possible.Indian society reward

Fictitious paper companies created just to siphon off funds as loans from banks, unregulated coop banks, and even PSU banks giving these fraud companies loans WITHOUT collateral are the main reasons of this scam. Strict monitoring of coop banks is required. Creation of fictitious companies needs to be stopped.

Shiladi123 (Kolkata)

And the rich getting richer poor being made to pay for it: that happens once too often in India. Will they ever pay for the death and desolation of the defrauded people? Given the speed of the law agencies in India (the Saradha, Rose Valley scams come to mind) this may take generations!


Audit results of the co-op bank will never show a true story on the health of the bank.It is high time depositors switch to nationalised banks


Baba Siddiqui was rumoured as the real owner of HDIL

Going by this article everyone should know that all high end luxuries enjoyed by these businessmen and Bollywood parties are with our money only yet we all hold them in high esteem and get fooled. Someone had written about Modi. What can he do ? He was not even the PM when DHFL started all these fraudulent activities. Had all the depositors asked Modi before depositing in DHFL ? They were all attracted by high ROI offered to them. Now they want Modi to help them and if he or his party does not do anything then may boycott the elections or press the NOTA button which is nothing but foolishness.


Baba Siddiqui is Congress leader


what a brilliant and well written article... congrats to the reporter''s!!

it boils down to inept regulators, when the going is good they don''t want to disturb the going and they help in building the falls euphoria which results to suffering of the small guys in the end. regulators should also be regulated and punished as they just try to please the present government and fail to do there prime duty.

Anonymous (bangalore)

Wonder what was auditors doing all these years and how as rating agencies giving the A rating to the companies til June.

Prince Gw (India)

It is a lapse on the part of institutions which are supposed to investigate possible financial crimes. Every one looked other way till the situation exploded. It is happening with every bankrupt company and it may not be coincidental.

Thoroughly useless, gossipy and shallow article

Builder-Politician-Administration nexus is very big in Mumbai to have dealings with otherwise people... here such nexus brusted in bank default/fraud manner to expose too many things... but 1.60 million depositors are ruined and in state of shock....

New Dog (dd)

the question is how to recover the money ..........these are hardcore white collar criminals....

Thrash the banking system. It is proved again that crooks cheats you one way or the other and post fact discoveries like this are not bring back the losses.

Dunbaka Vja (Bangalore, India)

unable to view comments.

this govt is just digging up rot part of our business community DHFL & HDIL come out of hiding after a crisis hit it or else they would have continued with there business of financing terror. RBI needs to merge these cooperative banks with national scheduled banks or get it completely under its control because these co-ops are run like fiefdom of families/politicians without any regulation they are under State govt supervision which never does there job. Cooperative banks are made to collapse so that the owner can run with the money

P K Chattopadhyay (Kolkata) replies to Nans Knight

Cooperative banks were conceptualised and implemented by Baba Nehru so that Khan Grace leaders could launder their black money earned through the licence permit regime which Nehru and his daughter had meticulously built and strengthened for funding the family and the party. Once Opposition leaders came to power, they also realised how useful these cooperative banks are for stashing away and laundering ill-gotten gains. So no political party would allow cooperative banks to be monitored by RBI. It is also impossible for RBI to be able to meaningfully monitor so many entities that this article mentions. The solution lies in abolishing cooperative banks.


When you have an incompetent RBI Governor this is only to be expected. The economy is tanking with Modi, Sitharaman & Shaktikanta Das who are 3 dubious entities. This cannot continue & once the financial system collapses the country will be in a rot.


Very good and informative article giving all details of this fraud saga.


This is not about only fund diversion but also supporting terrorism activities. From Mallya, ruia''s, bhushan steel to Wadhwans - they are not less than terrorists. They along with politicians are responsible for present situation of PSU banks. Management in PSU banks know how on phone call they funded every crony capitalists/terrorists. Private banks are now becoming more dangerous. Demonetization failed to achieve its objectives due to banks like PMC and many other private banks(politically connected). Idiot people who believe in banks like PMC will force Government to merge failed banks with PSU.

Mera Bharat Mahan!. Duniya Jhhokti Hai; Jhhokanewala Chaiye. DLF family-controlled Group companies have a total exposure of Rs 1.81 LAcs Crores of Borrowing from Banks, Debentures & Deposit. Mind-boggling figures continued for 11 years under the eyes of law enforcing agencies, RBI & the Govt. Suffers poor depositors at the ultimate end of the chain- Insurance limit ridiculously law Rs 1 lac per Account!! Perhaps only to help scamsters one after another no fraudster ever punished in the dance of Democracy.


As a debenture holder of DHFL with no interest payments for many months now and no chance of value redemption in the near future I feel cheated. All I can say is these people need to be punished severely and their assets confiscated for good - --not for revenge but to keep the system trustworthy. It is a very sad situation for some poor hard working people who have lost their hard earned savings or have no homes to live in.


kudos to the journalists for this comprehensive report


capital punishment only way to stop common man money loot by wadhu joy pappu hanging.


RBI should take over all co-operative banks and we will see again more than 100 frauds...out of 5000 registered co- operative banks...


Harshest punishment for all these goons..


Sometimes wounder is there a link between Jet Airways / HDIL / DHFL collapse ...? Is someone done with all businesses in India and winding up gradually ?

A red flag mechanism :When ever some one starts entertaining top Bollywood stars, it means there is trouble. So investigate his companies or her husband''s companies from that day onwards. For they are not spending their hard earned money and spending someone else''s money to build a social and political profile.

P K Chattopadhyay (Kolkata) replies to Sanjeev Malhotra

Yash Birla and his wife also did the same thing: partied with fixed deposit holders money and vanished behind the great Kumar Mangalam Birla.

But they didn’t run away, They paid back depositors. So don’t spread false propaganda.

P K Chattopadhyay (Kolkata) replies to Mukund Kadam

Yash Birla has not repaid fixed deposit holders of Zenith Birla and Birla Shloka Edutech. Please get your facts right before accusing me of false propaganda.


Every year, many Mumbaikars lose their lives in building collapses - yet sadly, redevelopment projects are stalled due to lack of funds. Given the high costs of land in Mumbai and redevelopment under SRA, the Maharashtra Government must scrap stamp duty or at least cut it by 75% while NHB should enhance home loan limits by introducing 25-30 year mortgages

Praker (Bangalore)

Real estate is still in top of corruption and black money... price are ultra high, keeping the real buyers away..


It is better to invest in only post offices deposit scheme. Never trust the corporate world.

P K Chattopadhyay (Kolkata) replies to Janardhan Rao

The problem with post offices is their rotten service and tendency to harass account holders. Also, I have not received some of the interest on monthly income scheme and written complaints have not elicited any response.

When business ran into trouble they decided to raid bank accounts of ordinary people by defrauding banks. They deserve the harshest punishment

One family one housing loan,twin regn of land,landed assets one by property one by aadhar,distribution of 1200 sq ft fsi for first flat seekers ,50 percent reservation of fsi at 4000 centers where fsi is sanctioned for first flat seekers,and ine nation one houding policy id dual pricing of fsi like sugat one for first flat buyers at cost of construction and other market rate,rera supervised,creation of construction banks,issue of land compensation bonds eith cap gain,tax free,gst free ,banks should only lend for construction cost only not for land ,and prohibit any type of land monitisation is urgently needed.aff hsg is free basic distribution of 1209 sq ft fsi abd under pmay clss.wanted a minister seperstely for aff hsg both at center and state level. Aff hsg donot require middle man,valuation and consultants.creation of fsi on a plot is a technical issue.pricing and price intervention is public ppolicy.35000 rs per sq ft,400 sq ft are not aff hsg as often written in property columns in should not encourage such writings first. 40 cr youth wants shelter and are first time flat buyers.housing for all at all times in all places is affordable,achievable and at 35 lacs 1200 sq ft flats can be built.think of the poor,poorest and who have list their faith in getting a decent shelter long term,durable bankable asset.let us create and make everyone have shelter pl.

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