It’s raining artworks for CBI; more works by Indian masters seized from DHFL’s Wadhawans

The Central Bureau of Investigation (CBI) on Thursday raided 2 premises in Mumbai linked to Kapil Wadhawan and Dheeraj Wadhawan, promoters of Dewan Housing Finance Corporation Limited (DHFL), and seized 2 paintings by FN Souza another by SH Raza

The Central Bureau of Investigation (CBI) on Thursday raided 2 premises in Mumbai linked to Kapil Wadhawan and Dheeraj Wadhawan, promoters of Dewan Housing Finance Corporation Limited (DHFL), and seized 2 paintings by FN Souza another by SH Raza. While both Souza artworks, untitled, were painted in 1964 when he was in his Cubist phase, the Raza painting was made in 1956.

One of the paintings seized by the CBI on Thursday. HT Photo

These art works, which CBI valuers estimate at ₹5.50 crore were part of the haul that included two Jacob & Co and Frank Muller Geneve timepieces valued at ₹5 crore, and gold and diamond bangles and necklaces estimated at ₹2 crore. CBI adds the total haul to ₹12.50 crore.

While investigating the Wadhawans, the CBI had on July 8 seized paintings worth ₹40 crore from the home of Ajay Navandar, a film distributor-turned-politician from Amravati, and a close associate of the Wadhawans. Among those paintings were the Bull by Tyeb Mehta estimated at over ₹27 crore and an untitled piece by Manjit Bawa which was assessed to be worth more than ₹7.7 crore. Navandra was arrested for on July 13.

The central agency is probing the Wadhawans for defaulting on a loan of ₹34,615 crore that DHFL had obtained from a consortium of 17 banks led by the Union Bank of India. A case was registered on June 20. At present both men are in CBI custody.

Between 2010 and 2018 the consortium of banks had extended credit facilities worth ₹42,871 crore to DHFL. The banks have complained that the Wadhawans siphoned off the funds to shell companies/paper entities, known as ‘Bandra Book Entities’, and caused a loss of ₹34,615 crore to the consortium.

The CBI has also searched the Wadhawan’s getaway in Mahabaleshwar, Dewan Villa, and found cash and allegedly incriminating documents from the property.

The Wadhawan brothers were first arrested in the Yes Bank - DHFL fraud case on April 26, 2020 and have been behind bars since. Their default bail pleas - on the ground that the CBI had failed to file chargesheet against them in the stipulated time of 60 days - were rejected by the special CBI court on June 25, 2020 and then again by the Bombay High court on November 4, 2020. Other than the CBI, the Wadhawans have also been booked by the Enforcement Directorate which is probing the money laundering aspects of the Yes Bank - DHFL fraud.