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ED arrests DHFL promoter Kapil Wadhawan in Iqbal Mirchi PMLA case

The case relates to Mirchi's Mumbai properties, which have been called as proceeds of crime by the ED. Three such properties were sold to Sunblink, the company linked to Wadhawan brothers Kapil and Dheeraj.

ET Bureau|
Last Updated: Jan 28, 2020, 08.22 AM IST
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Mirchi PMLA case: ED arrests DHFL promoter Kapil Wadhawan
Mirchi PMLA case: ED arrests DHFL promoter Kapil Wadhawan
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MUMBAI: The Enforcement Directorate (ED) Monday arrested DHFL promoter Kapil Wadhawan, claiming that the executive of the embattled home financier was an ‘active conspirator’ in an alleged money-laundering case involving the late drug lord Iqbal Memon, alias Iqbal Mirchi.

Seeking Wadhawan’s remand, the ED told the Prevention of Money Laundering Act (PMLA) court that the former head of the financier allegedly had a role in forming bogus companies that helped route funds illegally.

“Kapil Wadhawan, as the CMD, DHFL, has been instrumental in siphoning off huge amounts of money during the same period as that of the illegal deals between Mirchi and Wadhawans,” ED’s counsel Hiten Venegaonkar argued.

In a related development, his brother, Dheeraj, who has been identified as a ‘prime mover’ in the case, was granted bail by the same court. While Dheeraj was not arrested in the case, the ED in its charge-sheet had named him as an accused.

The ED is probing a property deal comprising the purchase of three dilapidated buildings in Worli, allegedly acquired by Mirchi illegally, and later sold to Sunblink Real Estate, which the agency argues is an alleged front company of the Wadhawans. The ED has relied on the statement of Heena Cheda, partner at Hariyani & Co, to claim that the Wadhawans paid Rs 199.50 crore to Mirchi for the purchase of these properties, which the agency is treating as proceeds from crimes carried out by Mirchi.

The ED contended that Sunblink paid Mirchi by availing unsecured loans from DHFL.

“It is revealed that the source of the amount paid in India i.e Rs 111 crore, towards the said deal was arranged by Sunblink to Mirchi from DHFL and later repaid from loans acquired by Sunblink from RKW Developers. The earlier loan of Rs 50 crore was taken from DHFL in 2010, which was later repaid by the loan taken from RKW Developers on an interest rate of 5-6 % per annum,” read the agency’s remand application, which ET has reviewed.

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