In the biggest-ever bank fraud case registered by the CBI, the agency has booked DHFL and its promoters  Kapil Wadhawan and Dheeraj Wadhawan in a fresh  bank fraud case worth Rs 34,615-crore. The CBI also conducted searches at a dozen locations in Mumbai.

The CBI registered a case on complaint from Union Bank of India, Industrial Finance Branch, Mumbai, against private (borrower) company Deewan Housing Finance Corporation Limited (DHFL), Bandra (East), Mumbai, its promoters Kapil and Dheeraj Wadhawan and others for allegedly cheating a consortium of 17 banks led by Union Bank of India to the tune of over Rs 34,615 crore.

The individuals and entities are accused of siphoning off loans availed from these banks and falsifying the books of DHFL besides creating shell companies/false entities, which subsequently came to be known as “Bandra Book Entities”.

“It was alleged that the said private company (DHFL) and its promoters had created a number of shell companies and fictitious entities (the Bandra Book Entities) and siphoned off huge funds by disbursing funds to such fictitious entities,” the CBI said in a statement.

It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions, it further said.

The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the DHFL.

Searches conducted at 12 locations in Mumbai on the premises of the accused which led to recovery of incriminating documents and further investigation is continuing, it added.

Besides DHFL and the Wadhawans, one private person Sudhakar Shetty and shell companies Amaryllis Realtors, Gulmarg Realtors, Skylark Buildcon Pvt Ltd, Darshan Developers Pvt Ltd, Sigtia Construction Pvt Ltd, Creatoz Builders Pvt Ltd, Township Developers Pvt Ltd, Shishir Reality Pvt Ltd, and Sunblink Real Estate Pvt Ltd, all based in Mumbai have also been named as accused in the FIR.