Wadhawans diverted ₹11.5k cr to shell firms for personal use

Dewan Housing Finance Corporation Limited (DHFL) promoters Kapil and Dheeraj Wadhawan diverted around ₹11,548 crore from the company to 87 fictitious entities—known as Bandra Book firms—for business purposes and personal use, according to the Enforcement Directorate's (ED's) charge sheet in the ₹34,614-crore bank loan fraud case linked to the company.

- Revu Suresh

MUMBAI:

The brothers used the diverted funds to purchase 25 paintings and a sculpture worth over ₹63 crore, expensive jewellery, and a 20% stake in Pune-based Varva Aviation, among other items, according to the charge sheet, a copy of which was seen by HT.

The investigation has revealed that DHFL developed a software that automatically split hundreds of crores diverted to its real estate arm through 87 shell firms into thousands of retail loans to mask the diverted amounts from banking regulators.