ED Freezes ₹51.75 Crore in DHFL Loan Fraud Probe
The Enforcement Directorate (ED), Headquarters Investigation Unit, has conducted searches in connection with its ongoing money-laundering investigation into the alleged loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL) and its promoters.
The searches were carried out on August 19, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation stems from an FIR registered by the Central Bureau of Investigation (CBI), AC-VI, New Delhi, following a complaint filed by Union Bank of India on behalf of a consortium of 17 banks.
According to the FIR, accused persons including Kapil Wadhawan and Dheeraj Wadhawan allegedly entered into a criminal conspiracy to defraud the consortium banks, which had sanctioned credit facilities totalling ₹42,871.42 crore to DHFL.
The investigation alleges that the loan funds were siphoned off and misappropriated through manipulation and falsification of DHFL’s books of accounts, causing an estimated wrongful loss of ₹34,615 crore to the consortium lenders.
During its investigation, the ED identified a foreign asset, Hurtmore House in the United Kingdom, held in the name of Vanita Wadhawan, wife of Kapil Wadhawan.
According to the agency, a series of transactions involving the property allegedly created a fictitious liability in Vanita Wadhawan’s name. A purported loan agreement was executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, following which the UK property was mortgaged.
The ED alleged that the arrangement was used to create an encumbrance over the foreign property with the intention of settling a liability in India arising from the alleged DHFL loan fraud.
The property was subsequently sold in 2026. However, according to the ED, the sale proceeds were directed to the Indian bank account of M/s Al Jalore Trading FZE instead of being received by the registered owner, Vanita Wadhawan.
The agency said the transaction resulted in the disposal and dissipation of proceeds of crime through a structured arrangement involving a foreign property and entities, allegedly to facilitate settlement of an Indian liability.
During the search, the ED 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. The agency said the amount represented proceeds of crime.
Several other incriminating documents and records relating to the transactions and assets under investigation were also seized or impounded during the search operation.
News Source : Information for this article was gathered from a variety of reliable news outlets.
