dhfl scam : DHFL: Another Wadhawan brothers link to D-gang emerges

A new example of an alleged underworld link between the Dawood gang and former DHFL promoters came to light on Friday with the Central Bureau of Investigation (CBI) questioning Ajay Nawandar as part of its investigation into the alleged loss of Rs .34,615 crore caused to the consortium of banks led by DHLL.

According to sources, Nawandar was questioned about some funds allegedly embezzled by the Wadhawans. Nawandar is an alleged associate of fugitive criminal Dawood Ibrahim’s trusted aide Chotta Shakeel, the sources added.

Both Dawood Ibrahim and Shakeel are wanted by Indian agencies in several cases, including for their alleged roles in the 1993 Bombay bombings case. Dawood is the alleged mastermind of said case. Pakistan has sanctioned Dawood Ibrahim along with 87 others for terrorism-related activities. India has designated him as a “terrorist” under the recently amended UAPA.

This is the second instance of an alleged underworld connection between DHFL promoters Kapil and Dheeraj Wadhawan and the surface of the D-gang. The ED had arrested them in the past in connection with a money laundering case linked to the late D-gang henchman, Iqbal Memon aka Iqbal Mirchi.

The two brothers, Kapil and Wadhawan are currently in police custody and are being investigated for multiple frauds by the CBI, ED and SFIO.

On Friday, the CBI conducted searches at Dewan Villa, Mahabaleshwar, a getaway on the outskirts of Mumbai which resulted in the recovery of a large number of paintings and sculptures, cash and other incriminating documents. “The value of these works of art is estimated at around Rs. 40 crore, according to initial estimates,” the agency said.

“,,, During the investigation, it was found that the promoters misappropriated the funds and made investments in various entities. It was also alleged that the promoters had acquired expensive paintings and sculptures worth of approximately Rs. 55 Crore (approximately) using the misappropriated funds,” the CBI statement read.

A case has been filed following a complaint by the Union Bank of India for allegedly siphoning off loans from the consortium of banks and falsifying the books of DHFL and then setting up front companies known as “Bandra Book Entities” to make accommodating entries.

“…It was alleged that the said private company and its promoters had created a number of front companies and shell entities (the Bandra Book entities) and siphoned off huge funds by funneling funds to these shell entities. It it was further alleged that separate audits conducted by other private accounting organizations had identified multiple instances of the defendant misappropriating funds for personal gain and falsifying books of account to camouflage and conceal questionable transactions,” the CBI said. “.. The audits also identified several instances where large-value loans were granted to such shell entities without due diligence and without guarantees. Cases of sanctioning and disbursement of loans, simply through communications by email, were allegedly found for which no loan records were kept in said private company (borrower),” the CBI added in its statement.

Harry D. Gonzalez