ED submits new indictment against DHFL promoter, his brother

The Enforcement Directorate (DE) filed its additional indictment on Monday in the case relating to the alleged suspicious transactions in 2018 between Rana Kapoor, founder of Yes Bank and the private company Dewan Housing Finance Limited (DHFL). The agency named 19 people and companies, including DHFL promoter Kapil Wadhawan, his brother Dheeraj Wadhawan and his family members.

The ED opened its money laundering investigation into the case on March 7 based on a CBI First Information Report, which was filed the same day against 12 people, including Kapoor, his three daughters and his wife, the Wadhawan brothers, and five businesses. The ED and CBI cases examined allegations that Kapoor colluded with Kapil Wadhawan and others to provide financial assistance to DHFL instead of a ‘substantial unfair advantage’ to himself and his family members through companies they owned. Between April and June 2018, Yes Bank invested Rs 3,700 crore in short-term debentures of DHFL, it was alleged.

Simultaneously, Wadhawan allegedly paid a bribe of Rs 600 crore in loans to DOIT, of which Kapoor’s daughters are 100% shareholders. DOIT is a wholly owned subsidiary of a company in which Kapoor’s wife is a director and 100% shareholder. The DHL ready to the DOIT would have been granted on the basis of the latter’s mortgage on five properties of an alleged low value and considering their conversion from agricultural land to residential land, it was alleged.

Kapil Wadhawan and Dhiraj Wadhawan

Others named in ED’s supplemental indictment included a Chartered Accountant (CA), Dr Jain, who told ED earlier that he allegedly gave CA certificates to a DHFL-controlled company, Belief Realtors Private Limited (BRPL), which was recently named in a Central Bureau of Investigation indictment in the case, for a loan of Rs 750 crore from Yes Bank. The loan was granted for a Bandra rehabilitation redevelopment project. It has been alleged that part of the loan was eventually transferred to DHL. The DHLL-controlled company is said to have made no investment in the project, sources said.

According to Jain, he had given certificates issued to BRPL to comply with the requirement of the bank’s 750 crore loan after checking bank statements showing incoming payments to three companies from the loan taken out by BRPL. ED had previously informed the court of the findings of its investigation which revealed that it was the RBI which first detected an alleged impropriety in dealings between Kapoor and the DHFL Group in 2018, after which the bank had to cancel a loan proposal of Rs 950 crore to BRPL. .