New Delhi, August 28: The Enforcement Directorate (ED) has taken significant action in the ₹34,615 crore bank loan fraud case linked to Dewan Housing Finance Corporation Limited (DHFL) and its promoters. The agency has frozen approximately ₹51.75 crore in bank deposits, stating that this amount is related to proceeds of crime uncovered during a money laundering investigation.
According to an official statement released by the ED on Friday, this action follows a search operation conducted on August 19 under the Prevention of Money Laundering Act (PMLA), 2002. The investigation revealed that a property in the UK, known as Hurtmore House and registered in the name of Kapil Wadhawan’s wife, Vanita Wadhawan, was allegedly sold through complex financial transactions and artificial liabilities.
The investigation agency noted that a purported loan agreement was created between Al Jalore Trading FZE and Vanita Wadhawan, based on which the UK property was mortgaged. The ED alleges that this entire arrangement aimed to settle liabilities related to the DHFL bank fraud by presenting a legal burden on foreign assets.
Further investigation revealed that this property was sold in 2026, but instead of the sale proceeds going to the actual owner, Vanita Wadhawan, the funds were transferred to Al Jalore Trading FZE’s bank account in India.
The agency asserts that this transaction was part of a planned process to launder proceeds of crime and settle Indian liabilities through foreign assets. During the search, the ED examined Al Jalore Trading FZE’s bank account, discovering approximately $541,000 (around ₹51.75 crore) deposited. The agency has frozen this amount under Section 17(1A) of the PMLA. Additionally, several important documents and records were seized during the investigation.
This case emerged based on an FIR filed by the Central Bureau of Investigation (CBI). The complaint was lodged by Union Bank of India on behalf of a consortium of 17 banks. The FIR alleges that Kapil Wadhawan, Dheeraj Wadhawan, and other accused conspired to defraud the consortium banks.
According to the CBI, the group of banks had approved loan facilities totaling ₹42,871.42 crore to DHFL. Subsequently, the accused allegedly manipulated the company’s accounts, misusing and embezzling the loan amounts, resulting in a loss of approximately ₹34,615 crore to the banks.
The ED has stated that further investigations are ongoing, focusing on the flow of funds, foreign assets, and the roles of related entities. This case is considered one of the largest banking and financial frauds in the country.
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