DHFL Case: Wadhwan bros clandestinely gave loans to their owned developers fraudulently, CBI tells Court

New Delhi [India], July 31 : The Central Bureau of Investigation (CBI) has informed a Special Court of Delhi that the accused Wadhawan brothers clandestinely gave loans to their owned companies/ developers fraudulently whereas it was shown that such loans were given to retail individuals borrowers who in fact, were not existing.
CBI further told the court that there are various companies belonging to the accused Wadhawan brothers in which loans were diverted by DHFL.
The accused Kapil Wadhawan during custodial remand revealed that he had acquired shares of Dhanlakshmi Bank, Vallash Polyplast and Wadhawan Global valued at Rs 17.98 crores through the broker Antique Stock Broking Ltd. Mumbai.
There are reasonable apprehensions that the aforesaid shares were acquired from the proceeds of the defrauded amount and therefore investigation in this regard is also continuing.
The investigation has also established that the records were dishonestly falsified and material information was concealed from the records of DHFL in order to divert and siphon off the funds dishonestly and fraudulently, availed from different consortium banks led by Union Bank of India, said the CBI.
CBI further submitted before the Court that, during the investigation, certain incriminating digital device recovered is being analysed and it has been felt that the sample voice of accused Dheeraj Wadhawan is essentially required for comparison of his voice with incriminating voice contents found in a digital device.
On July 29, 2022, the accused Dheeraj Wadhawan explained the purpose of taking his specimen voice in the presence of an independent witness.
Despite explaining to him the relevancy and requirement of obtaining a sample/ specimen of his voice, he declined to give his specimen voice.
It is evident that accused Dheeraj Rajeshkumar Wadhawan is not cooperating during the investigation.
Special Judge Vishal Gogne on Saturday dismissed the application filed by the CBI seeking further police custody for three more days on the ground that there is no necessity for further custodial interrogation in the matter.
Court sent them to judicial custody till August 5, 2022, to conduct further investigation into M/s Dewan Housing Finance Corporation Limited (DHFL) scam to tune 34000 crores.
Court noted that the CBI's assessment projected new information inter-alia shares, searches at other properties, an investigation into recovered articles like a helicopter, and investigation into multiple alleged shell companies can be carried out and continued without any particular accretion to investigation from further police custody (CBI custody) of the present two accused.
CBI argued that there are voluminous documents/digital data related to around 95 entities/shell companies belonging to various suspects/accused with which both accused are to be confronted.
They need to be confronted with the dummy directors of Shell Companies in which the funds were diverted by DHFL availed from banks.
It was also argued that there is every likelihood that further custodial interrogation of both the accused persons may lead to the recovery of further valuables and other assets acquired from the defrauded loan amount.
CBI also argued that M/s RKW Developers Pvt. Ltd. (owned by the Wadhawan family and the entities owned/controlled by them), is holding substantial shareholding in the Helicopter (AgustaGrand of AgustaWestland) in the name of MWs Varva Aviation, Pune.
The value of the Helicopter was Rs.36 crores out of which M/s RKW Developers Pvt. Ltd. contributed a substantial amount in 2017 towards their stake in the cost price and maintenance of said helicopter.
CBI stated that Dheeraj Wadhawan has been non-cooperative in the investigation as he refused to give his voice samples despite explaining the relevancy and requirement of obtaining a sample/specimen of his voice to him.
Advocate Vijay Aggarwal appearing on behalf of the Wadhawan brothers strongly opposed the plea of the CBI seeking further interrogation.
He argued that despite the previous tenure of eleven days, the CBI has not been able to garner adequate material to justify further custody.
Advocate Vijay Aggarwal also argued that the alleged money trail is entirely documentary and capable of verification without custodial interrogation.
He argued that the investigation will go on for days, months, or years but CBI cannot seek police custody for the entire period of investigation.
Advocate Aggarwal for the accused also argued that his client's refusal to give a voice sample does not show non-cooperation and the same can be taken during further interrogation and CBI has no right to seek his voice sample in terms of Judgment passed by the Supreme Court.
According to the CBI, the two accused persons are the principal architects of the concerted diversion of loan amounts amounting to about Rs. 29,000 crores (approximately) out of the NPA amount of Rs. 34,000 crores (approximately) in relation to the total loans of approximately Rs. 42,000 crores.
These loans were advanced by the complainant bank i.e. the Union Bank of India and other banks, forming a consortium of 17 Indian banks, to DHFL which is a non-banking finance company engaged in extending financial assistance to low and middle-income group individuals for the acquisition of houses.
CBI lawyers further stated that the independent audit of the funds loaned by the consortium to the DHFL revealed that these funds were instead disbursed by the DHFL to connected entities and individuals with commonalities to DHFL promoters/ directors.
According to the CBI, out of 35 such entities, 25 entities had minimal operations and were still disbursed loans by DHFL.
Thereafter, 31 more connected entities have purportedly emerged. The sum of Rs 29,000 crores (approx) has allegedly been together diverted to these 66 entities.