Bank Scam: DHFL's Wadhawan Brothers Brought To Delhi By CBI For Court Hearing

Wadhawan brothers were booked in a bank scam case registered by 17 lenders, led by Union bank of India

The CBI will seek Wadhawans' custody in connection with its FIR related to the bank scam.

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The CBI has brought Dewan Housing Finance Corporation Ltd's former Managing Director Kapil Wadhawan and Director Dheeraj Wadhawan to Delhi from Lucknow for a court hearing in connection with the Rs 34,815 crore bank scam case.

The agency will produce them before the Special CBI court on Tuesday along with alleged aide of Chota Shakeel Ajay Nawandar whose five-day police remand is completing, they said.

Wadhawan brothers were booked in a bank scam case registered by 17 lenders, led by Union bank of India. The case was filed after the NCLAT court had pulled up the consortium of banks, including Union bank of India, for gifting assets worth Rs 40,000 crore for just Rs 1 to Piramal housing. 

Apparently, the banks were directed by the NCLT's Mumbai Bench to consider the settlement proposals made by the promoters who were ready to make full payment to the creditors.

However the resolution passed by SBI Capital Market and E&Y was refused by the banks and instead obtained a stay on the order.

The NCLAT court had even directed that any recoveries from the loan transactions worth Rs 4,000 crore forming the subject matter of the avoidance applications would ensure for the benefit of the creditors. However, the committee of creditors (COC), including the banks obtained a stay on the order from the Supreme Court.

If the settlement proposal by Wadhwans is accepted by the CoC, then all the public money will be fully recovered by not only the Banks but also the FD holders and NCD holders, who constitute more than 65 per cent of the CoC.

There have been petition in the NCLT, NCLAT, and the Supreme Court against the CoC and administrator that DHFL has been sold to Piramal at a gross undervalue. The effort of the NCLT and the NCLAT to ensure that public money is protected and recovered, has been negated by the Union Bank of India and the other banks themselves. It is thus clear that the administrator, Union Bank of India, and certain other banks have colluded to ensure that the resolution of DHFL takes place with a significant haircut to the lenders to unjustly enrich Piramal and cause massive loss of public money. 

On the other hand, signature campaign has been launched by the investors against the CoC.

The CBI will seek Wadhawans' custody in connection with its FIR related to the scam, the PTI reported.

The bank has alleged that the Wadhawans in criminal conspiracy with others misrepresented and concealed facts, committed criminal breach of trust and abused public funds to cheat the consortium to the tune of Rs 34,615 crore by defaulting on loan repayments from May 2019 onwards.

The audit of DHFL account books showed that the company allegedly committed financial irregularities, diverted funds, fabricated books, round tripped funds to "create assets for Kapil and Dheeraj Wadhawan" using public money.