Indian banking system, which is struggling with issue of mounting bad loans, has been hit by another banking fraud case. This time the Central Bureau of Investigation (CBI) has booked promoters of non-banking finance company – Dewan Housing Finance Limited (DHFL) of defrauding a consortium of 17 banks worth Rs 34,000 crore. DHFL banking fraud is being termed as the country’s biggest scam in banking industry after ABG Shipyard’s fraud case of Rs 20,000 crore which was reported earlier this year.
A total of 17 banks have been defrauded of over Rs 34,000 crore by home loan provider DHFL.
The CBI on Wednesday booked former promoters of DHFL, Kapil Wadhawan and Dheeraj Wadhawan, among 13 others in connection with the case.
The case has been registered on a complaint from the Union Bank of India (UBI). According to the UBI complaint, since 2010, the DHFL has extended credit facilities of over Rs 42,000 crore by the consortium of which Rs 34,615 crore remain outstanding. The loan was declared NPA in 2019 and fraud in 2020.
After the registration of a case on June 20, a team of over 50 officials from the agency on Wednesday carried out searches on a dozen premises in Mumbai belonging to the FIR-listed accused who also include Sudhakar Shetty of Amaryllis Realtors and eight other builders.
What is the DHFL ‘scam’?
The Union Bank of India in its complaint has alleged that DHFL had taken Rs 42,871 crore as loans from a consortium of 17…
