DHFL Chief Kapil Wadhawan in ED Custody in Iqbal Mirchi Money Laundering Case
Moneylife Digital Team 28 January 2020
The Enforcement Directorate (ED) arrested Kapil Wadhawan, chairman and managing director of Dewan Housing Finance Ltd (DHFL), in connection with its probe in money laundering against underworld don Dawood Ibrahim's close aide and dead gangster Iqbal Mirchi and others. Mr Wadhawan was named as accused in the money laundering case after ED said he was not cooperating with the probe.
 
The DHFL chief was arrested under the Prevention of Money Laundering Act (PMLA) as ED found that he was not cooperating in the probe and was untrustworthy in his dealings as well as statements. He would remain in ED's custody till 29th January.  
 
The case relates to Iqbal Mirchi's Mumbai properties which have been called as proceeds of crime. Three such properties were sold to Sunblink Real Estate Pvt Ltd, the company linked to Mr Wadhawan's brother, Dheeraj. The three prime properties—Rabia Mansion, Mariam Lodge and Sea View—all in Worli, were sold for around Rs225 crore.
 
ED has alleged that the DHFL chief diverted funds from the company to shell companies and later these dubious companies got amalgamated with Sunblink to 'cover' alleged diversion of loans acquired from DHFL. 
 
The ED alleged that the conduit of Sunblink was "purposefully created by Kapil Wadhawan as CMD of DHFL and others just to obfuscate the trail of money for the purchase of properties" from the Mirchi family.
 
The ED has filed a criminal case against Mirchi alias Iqbal Memon, his family and others to probe money laundering charges for alleged illegal dealings in purchase and sale of costly real estate assets in Mumbai. 
 
Iqbal Mirchi, who died in 2013 in London, was alleged to be the right-hand man of Dawood Ibrahim. 
 
Earlier in November 2019, the Lok Sabha was informed that the ministry of corporate affairs has finished conducting an inspection of DHFL and has submitted the inspection report to the finance ministry. As per the submitted report, DHFL has a total loan portfolio of Rs95,615 crore.
 
The embattled housing finance company has a total loan portfolio of Rs95,615 crore which includes housing loans of Rs44,851 crore, non-housing at Rs13,590 crore, SME (small and medium enterprise) loans Rs4,924 crore under the retail loans. Under the wholesale loans, housing of residential projects at Rs15,655 crore, SRA (slum rehabilitation authority) project, Rs7,021 crore, non-housing at Rs9,340 crore and commercial at Rs233 crore.
 
During the same month, the Reserve Bank of India (RBI) had superseded the board and there were reports that they want to refer DHFL to National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). R Subramaniakumar had been appointed as administrator of DHFL for  taking stock of assets and liabilities of the company. A resolution plan will be accepted only if 66% of the CoC (committee of creditors) approve it. There has been a freeze on payment to creditors already.
 
DHFL has been facing a liquidity crisis since September 2018 and has so far paid Rs41,000 crore of its financial obligations through a securitisation of assets and repayment collections.
Comments
Ramesh Poapt
4 years ago
will retail depositors/retail ncd investors be scapegoats?!
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