Mumbai, – In a major development, the Central Bureau of Investigation (CBI) has conducted searches at multiple locations in Mumbai, including the premises of Kapil Wadhawan, his brother Dheeraj Wadhawan, and Sudhakar Shetty, a builder associated with the Sahana Group. The searches were carried out after the CBI registered a bank fraud case involving an astounding Rs 34,615 crore against the Wadhawan brothers and their associates.
The CBI’s operation covered 12 locations across Mumbai, where they seized critical documents related to the fraudulent activities. The case centers around the alleged diversion of funds from DHFL (Dewan Housing Finance Corporation Ltd), which had secured credit facilities worth Rs 42,871 crore from a consortium of 17 banks led by Union Bank of India. These funds were allegedly redirected to companies controlled by the Wadhawan brothers and Sudhakar Shetty in the form of loans.
After DHFL defaulted on repaying the outstanding loan amount of Rs 34,615 crore, the banks filed a complaint, triggering the investigation. The Wadhawan brothers, in collaboration with Shetty, allegedly funneled substantial sums of the borrowed money into companies owned by Shetty, a prominent figure in Mumbai’s construction industry who once owned the notorious Deepa dance bar in Vile Parle West.
The CBI has named Shetty and his associated companies in the fraud case, along with the Wadhawan brothers. In addition, the Enforcement Directorate (ED) has previously arrested the Wadhawan brothers in connection with other high-profile fraud cases, including the Yes Bank loan scandal and the Iqbal Mirchi cases. Both brothers are currently in judicial custody.
The CBI’s investigation has revealed that the Wadhawan brothers instructed DHFL to disburse loans to companies they controlled. These loans were allegedly sanctioned and disbursed with minimal documentation, often communicated through e-mails with no formal loan files maintained. The CBI has also found evidence that shows how Rs 24,595 crore was diverted through 66 entities linked to the Wadhawan brothers under the pretext of loans, with Rs 11,909 crore still outstanding.
In addition to this, DHFL is accused of disbursing Rs 14,000 crore in fake loans to 1,81,664 non-existent individuals, maintaining these records under the label of ‘Bandra Books.’ The CBI’s press release emphasized that the accused manipulated bank loans, created false companies, and falsified the company’s financial records, leading to significant financial loss to the consortium of banks.
