CBI To Name Controversial Market Operator Sanjay Dangi as Accused in the Rs34,000 Crore DHFL Scam

Moneylife Digital Team 10 June 2024

Economy & Nation

The central bureau of investigation (CBI) has reportedly told the Bombay High Court (HC) that it has decided to name Sanjay Dangi, a controversial stock market operator with a history of SEBI (Securities and Exchange Board of India) bans, as an accused in the Rs34,000 crore Dewan Housing Finance Corporation Ltd (DHFL) financial scandal.

Mr Dangi, who is a promoter of Authum Investment and Infrastructure Ltd, and his wife, both non-executive promoter directors, will be included in an upcoming charge-sheet of CBI, reports say.

This development follows Mr Dangi's petition seeking permission to travel abroad, which the court granted, noting his fundamental right to travel under Article 21 of the Constitution. The court acknowledged that he had not been named as an accused in any chargesheets filed so far. The CBI's last charge-sheet in the case was filed in 2022.

The DHFL case is a major financial scandal that also involves Yes Bank. Between April and June 2018, Yes Bank invested about Rs4,727 crore in DHFL's non-convertible debentures and Masala Bonds and sanctioned a Rs750 crore term loan to a DHFL group company. In return, Yes Bank's then-managing director and chief executive officer (MD&CEO) Rana Kapoor, allegedly received a Rs600 crore kickback from DHFL.

Authum Investment and Infrastructure, with a market-capitalisation of Rs17,000 crore, is backed by Mr Dangi, who apparently has a net worth of about Rs10,000 crore. Mr Dangi also owns Pacific Corporate Services, the flagship of the Dangi Group, which encompasses over a dozen investment companies.

According to market sources, Mr Dangi gained significant attention for trapping several high-profile foreign institutional investors (FIIs) with a short position in a stock that surged dramatically in early 2009. In addition to his involvement in Authum, he holds directorship positions at Uniworld Entertainment Pvt Ltd and UBT LLP. Although he resigned from UBT LLP last year, his family member, Amit Dangi, continues to serve as a director.

In a separate matter, Authum Investment and Infrastructure bought electoral bonds worth Rs25 crore during FY22-23. These purchases coincided with critical approvals for Authum's acquisition of two major stressed assets from the Reliance-Anil Ambani group, where lenders took significant haircuts. This raises questions about the potential link between the bond purchases and the timely regulatory approvals received.

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