DHFL case: ED freezes bank deposits worth Rs 51.75 crore

The Enforcement Directorate (ED) on Friday said it has frozen bank deposits worth Rs 51.75 crore under the anti-money laundering law as part of its fresh action in connection with an alleged bank-loan fraud worth over Rs 34,000 crore, linked to the Dewan Housing Finance Corporation Ltd (DHFL).

The agency said in a statement that it conducted fresh searches in connection with the case on August 19. The ED probe under the Prevention of Money Laundering Act (PMLA) stems from a CBI FIR filed on a complaint from a consortium of 17 banks against DHFL and its promoters, Kapil Wadhawan and Dheeraj Wadhawan, for an alleged bank-loan fraud of Rs 34,615 crore.

The ED said it has found that an immovable asset named “Hurtmore House” located in the United Kingdom was held in the name of Vanita Wadhawan, wife of Kapil Wadhawan.

This asset was disposed of through a series of transactions involving the creation of a fictitious liability in her name, the federal agency said.

“A purported loan agreement was executed between Al Jalore Trading FZE and Vanita Wadhawan and the said UK property was mortgaged pursuant thereto.

“Investigation has revealed that the arrangement was used to create an encumbrance over the foreign asset for the purpose of settling a liability in India arising out of the DHFL loan fraud,” the ED said.

The property was sold this year and the sale consideration was sent to the bank account of Al Jalore Trading FZE maintained in India, instead of being received by the registered owner, Vanita Wadhawan.

“The transaction, thus, involved dissipation of proceeds of crime, utilisation and disposal of a foreign asset in a manner intended to facilitate settlement of an Indian liability through a structured transaction involving foreign property and entities,” the agency said.

During the searches, the ED froze the bank account of Al Jalore Trading FZE holding $5.41 million (Rs 51.75 crore).