It’s been nearly five months since India’s biggest bank fraud came to light earlier this year. The CBI booked Dewan Housing Finance Ltd. (DHFL), its former CMD Kapil Wadhawan, director Dheeraj Wadhawan and others for a massive bank fraud of Rs 34,614 crore.
And now, the Central Bureau of Investigation (CBI) has given more details regarding the fraud. It has alleged that DHFL’s promoters formed 87 shell companies, created more than 260,000 “fictitious borrowers” and set up a “virtual branch” to divert money borrowed from banks, as per ET.
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For the uninitiated, a shell company is a company that exists only on paper and has no office, no employees, no active business operations or significant assets.
In its charge sheet filed last month in connection with India’s biggest bank fraud, involving Rs 34,614 crore, CBI stated that Kapil and Dheeraj Wadhawan diverted funds and purchased 24 paintings worth Rs 63 crore.
A special CBI court last week reportedly also ordered that all 75 accused in the case be summoned. “Investigation at the overseas level has also to be conducted to trace the trail of funds of DHFL,” said the court order.
What CBI’s Charge Sheet Mentioned
The charge sheet, a copy of which was seen by ET, said DHFL disbursed Rs 11,765 crore to 87 shell companies between 2007 and 2017. It said the CBI investigation has revealed that the Wadhawans incorporated entities in the name of their employees, associates and friends.
They fraudulently…
