ED Freezes ₹51.75 Crore Linked to DHFL Loan Fraud During Search Operation
The Enforcement Directorate (ED), Headquarters Investigation Unit, has frozen approximately ₹51.75 crore held in a bank account linked to M/s Al Jalore Trading FZE during a search operation conducted on August 19, 2026, in connection with the ongoing money-laundering investigation into the alleged loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL) and its promoters.
The action was carried out under the Prevention of Money Laundering Act (PMLA), 2002. According to the ED, the investigation stems from an FIR registered by the CBI’s Anti-Corruption Branch-VI in New Delhi, following a complaint filed by Union Bank of India on behalf of a consortium of 17 banks.
The FIR alleges that DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, along with other accused persons, entered into a criminal conspiracy to defraud the lending consortium. The banks had sanctioned credit facilities totalling ₹42,871.42 crore to DHFL. The loan funds were allegedly diverted and misappropriated through manipulation of the company’s books of accounts, causing an estimated loss of ₹34,615 crore to the consortium lenders.
During its investigation, the ED traced a foreign asset, Hurtmore House in the United Kingdom, held in the name of Vanita Wadhawan, wife of Kapil Wadhawan. The agency alleged that the property was disposed of through a series of transactions involving the creation of a fictitious liability in Vanita Wadhawan’s name.
According to the ED, a purported loan agreement was executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, following which the UK property was mortgaged. Investigators suspect that this arrangement was designed to create an encumbrance over the foreign asset and facilitate the settlement of a liability in India arising from the DHFL loan fraud.
The property was subsequently sold in 2026. However, instead of the sale proceeds being received by its registered owner, Vanita Wadhawan, the consideration was reportedly transferred to the Indian bank account of M/s Al Jalore Trading FZE.
The ED stated that the transaction involved the alleged diversion and disposal of proceeds of crime through a structured arrangement involving a foreign property and entities, with the objective of settling an Indian liability.
During the search, officials examined the bank account of M/s Al Jalore Trading FZE and froze approximately US$5.41 million, equivalent to around ₹51.75 crore, under Section 17(1A) of the PMLA, 2002. The agency has identified the amount as proceeds of crime.
Apart from freezing the funds, the ED also seized and impounded documents and records relating to the transactions and assets under investigation. Further investigation into the alleged money-laundering network is underway.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
