The Enforcement Directorate has frozen Rs 51.75 crore in bank deposits as part of the ongoing investigation into the Rs 34,615 crore DHFL loan fraud. The agency found that proceeds from the sale of a UK-based property were diverted through a foreign entity to mask the funds. DHFL is currently under an insolvency resolution process.
The Enforcement Directorate (ED) has taken further action in the long-running Dewan Housing Finance Corporation Limited (DHFL) bank fraud case by freezing bank deposits worth Rs 51.75 crore. The move is part of an ongoing investigation into how the promoters of the collapsed housing finance company allegedly laundered money through complex foreign structures.
Investigators identified that the funds were held in the Indian bank account of a firm named Al Jalore Trading FZE. The probe revealed that these funds were proceeds from the sale of a property in the United Kingdom, known as "Hurtmore House." According to the agency, the property was registered under the name of Vanita Wadhawan, the wife of DHFL promoter Kapil Wadhawan.
The ED alleged that the promoters created a fictitious liability on this UK asset to justify the movement of money. When the property was eventually sold earlier this year, the proceeds were diverted to the Al Jalore Trading FZE account instead of going to the actual owner. This allowed the parties involved to mask the original source of the money while attempting to settle domestic liabilities linked to the fraud.
The DHFL case involves a massive credit fraud complaint valued at Rs 34,615 crore, filed by a consortium of 17 banks led by Union Bank of India. The ED is investigating the matter under the Prevention of Money Laundering Act (PMLA), targeting promoters Kapil and Dheeraj Wadhawan.
For investors and observers, this update underscores the difficulty regulators face in tracing and recovering funds in high-profile corporate fraud cases. Because the proceeds were moved through international assets and foreign entities, the investigation remains a complex, time-consuming process.
It is important for market participants to note that DHFL is not a standard active stock. The company is currently under an insolvency resolution process following its collapse. The ongoing ED probe serves as a reminder of the significant governance failures that led to the company’s downfall, and future recoveries remain dependent on the success of these legal and regulatory actions.