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ED to get DHFL promoter to confront others

PUBLISHED ON JAN 29, 2020 12:24 AM IST

The Enforcement Directorate (ED) will “confront” Dewan Housing Finance Corporation (DHFL) promoter Kapil Wadhawan, 46, who was arrested on Monday in connection with the money-laundering probe against the late gangster, Iqbal Mirchi, with others whose statements have been recorded under the Prevention of Money Laundering Act (PMLA).

The DHFL allegedly extended loans to Sunblink Real Estate Pvt Ltd, which purportedly routed money to Mirchi, who died in the UK in August 2013.

The DHFL came under the ED’s scanner when the agency was examining three properties linked to Mirchi, an aide of fugitive gangster Dawood Ibrahim, in Worli.

According to ED sources, Wadhawan was unwell on Tuesday and will be produced before a special Prevention of Money Laundering Act (PMLA) court on Wednesday. The ED told the court on Tuesday that Wadhawan’s conduct was “uncooperative and questionable”.

“The accused needs to be confronted with other persons whose statements have been recorded in the probe,” the ED stated in its remand report, adding Wadhawan’s interrogation is needed to trace the end-use of the huge amount of money which appears to have been laundered in the maze of transactions related to the three properties in Worli.

The agency alleged that Wadhawan was not able to produce documents to establish bonafides with regards to the loans disbursed by the DHFL.

According to sources, during his interrogation, Chandresh Jhunjhunwala, one of the brokers in the deal, told the ED that while Wadhawan came to London with him to meet Mirchi, the DHFL promoter did not participate in the meeting. “The DHFL had given loans to five companies – Faith Realtors (approximately 685 crore), Marvel Township (approximately 510 crore), Able Realty (approximately 215 crore), Poseidon Realty (approximately 392 crore) and Random Realtors (approximately 352 crore) -- amounting to around 2,154 crore in 2010-11. These loans were outstanding in the books of DHFL until July 2019, which had a total outstanding amount of 2,186 crore,” the ED probe revealed.

The ED has alleged there is no document available with the office of DHFL with regard to the loans given to the five companies and the loans were given bypassing the standards prescribed in the loan policy of the DHFL.

The agency has alleged that the five companies appear to be shell companies as deposed by the directors of these companies. These persons also allegedly deposed that beneficial owner of these companies are Kapil Wadhawan and Dheeraj Wadhawan. Dheeraj Wadhawan, the former non-executive director of DHFL, is also mentioned as an accused in the case.

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